There are those manufcturing business models where the products and materials you buy are just not feasible to cost track into the product that is sold. An example would be if you hand make clothing. You'll buy cloth material by the bolt. But trying to cost out from a bolt only that material used in your manufacturing process, just isn't possible or feasible.
In such a case, if your business gross income is under something like $1M, you can just expense all your materials and not use COGS at all. But you do still have to account for those materials withdrawn from the business for personal use. You do that by simply not expensing it to the business. It's treated as an owner's draw.
