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How to record expenses that are used to create a product to be sold?
Hi, we run a fish and chips shop and I was wondering how we can account for the ingredients we pay to make the product?
So for example, we purchase $500 worth of fish. Would this be a Cost of Goods Sold Expense? What accounts would we need in order to clearly show our purchases? We also sell drinks. Would we need one account for each ingredient/?
Thanks for your help!
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