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+--- Thread: Setting up Account for Raw Materials (/thread-setting-up-account-for-raw-materials)
Setting up Account for Raw Materials - Allirav - 03-12-2007
Is raw materials considered Cost of Goods Sold, or an Inventory Asset?
For example, my business involves making custom baby blankets. We buy thread, fabric, etc.
- zafar - 03-13-2007
Yes,it is included in cost of goods sold in
case of manufacturing company.
i.e
Raw material xxx
Direct Labour xxx
=====
Prime Cost xxxxx
=====
Prime cost is added in OHs to calculate
total cost of manufacturing companies.