Canada Cost of Goods Sold with multiple Raw Materials

[Faisal Ahmed]

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)?

 

[Manikandan]

Hi.. i think yes.. if we have different nature of raw-materials, we have to keep separate accounts for each.