HI--Can you clarify something for me? In the example below, you say that supplies NOT included in Cost of goods sold, which are are supplies like needles that are used over and over for production of inventory. BUT in the program, materials and supplies are BOTH listed under CGS, not separately.
The Cost of purchases I have determined are items that are sold but don't need much alteration (such as a tshirt that I embroider on) .
I am confused on "Materials and supplies" which are a separate category, but together. How do I separate out materials, which were determined to be "fabric" in the 2019 example and "needles" were in the supplies category, which was stated is NOT to be included in cost of goods sold, yet you outline it in the example as a "supply" expense. If you could clarify what category would patterns, needles, scissors would be, if not "materials and supplies" under Cost of Goods sold, where would they go? Business expense? Thank you!
