Auto-build accounting for raw materials and injection moulding
Hi,
We use auto-build to assemble components (which are in inventory, but not for sale) into the finished product (which is also in inventory as the items for sale).
But there's a step before this, where we purchase the raw material (the plastic) that gets melted and injection moulded into the components that make up the finished product.
I'm wondering what's the best way to account for the raw materials that go into making the components, which then are built into the finished product? This is both account for it and try to track it for stock levels. It's raw material, that eventually builds into inventory, but in addition there is the injection moulding costs per component as well.
IS it accounted for as an Expense or Cost Of Sales?
Thank you,
James