Canada Cost of Goods Sold with multiple Raw Materials


Joined
Feb 12, 2017
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Canada
Hi,

I have a confusion regarding CGS. I know that:

CGS = Opening inventory+Purchases-closing inventory+production overheads.

This is simple if there is only one raw material to input. What if there are, let say, 5 different raw materials. Would we have separate inventory accounts and purchases accounts for each raw material (in this case 5)?
 
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Joined
Mar 15, 2021
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India
Hi.. i think yes.. if we have different nature of raw-materials, we have to keep separate accounts for each.
 

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