Should I report the costs of baking ingredients as a supply expense? (I own a baking business)

[amd112299]

I make custom cookies. To do this I must purchase ingredients (eggs, butter, flour, etc) for each order. Is this something I should report as a supply expense?

[LeonardS]

Yes, the ingredients you purchase to make your custom cookies should be reported as a supply expense.

[boonas]

I thought these were considered as raw materials and applied towards cost of goods?

[VolvoGirl]

Yes either way.  If you carry inventory you usually enter it as cost of goods sold.  Or you can report it as Supply expenses.