Where to cost materials for making items for sale

Yes, purchases of goods for resale or materials to be made into said goods would be “general purchases”. You then make adjustments at year end for the value of stock that you hold at the year end date in order to work out your true cost of sales for the year, i.e. the cost of the material that went into the things you have actually sold - there are a number of posts on here discussing how this works.

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