Inventory Adjustments vs Inventory Shrinkage and COGS

Please help.

I have two categories of inventory; inventory I sell (products) and inventory I used to make my products (raw materials, packaging etc.)

The Cost of the products I sell are categorized as COGS.

I run into problems with my reports, because my inventory adjustment account is not appropriate. I have tried using: 1) COGS-supplies and materials 2) Inventory Shrinkage and BOTH of these accounts end up generating NEGATIVE values on my P&L; which isn't accurate. Which is the BEST account to link to inventory adjustment so that my P&L actually includes the COST of the raw materials we use to make our products? OR is this a redundant adjustment as we are accounting for the COST of all the raw materials and packaging into the COGS for the product we sell?

We also do an end of the month count on our raw materials inventory.

Any insight into the best way to categorize the inventory adjustment account so that our P&L is more accurate would be appreciated.