I am a dressmaker. I purchase fabric and materials that go into the final product (fabric, thread, interfacings). I also purchase items that are consumed during the manufacturing process (pattern paper, rotary blades, etc.). Do I classify each of these things as "cost of purchases" or "materials and supplies"?
Where would I put items such as labels? "Cost of Purchases" or "Materials and Supplies"?
I also have expenses such as fabric sample cards that I use to show my clients in order to sell fabrics for dresses. What would this be classified under?
