I have a gourmet food business with a dozen or so products. Each product has a different final cost to me, based on the co-packer cost (which already includes ingredients and labor), cost of the jar, lid, label, and freight. I order the jars, lids, and labels myself. To get the proper cost of goods sold for each item:
1) Should I enter the jars, lids, and labels as inventory when I purchase them? I'd like to keep track of how many of each I have and track them as each jar is sold as part of the COGS.
2) How do I keep track of the COGS of each item when it sells? Is the product itself the "parent" and each cost involved is a "sub account"? I don't want each little cost involved listed on the invoice to a customer.
Thank you for any help you can offer. I haven't found an exact situation in the community that fits my situation.
Solved! Go to Solution.