Hello there. Today, we'll be looking at how to account for materials in manufacturing on the Built accounting platform. To do this, click on Products and Services. From products and services, create the raw materials.

We have a video on creating that, so we can create the raw materials for products or services by watching the video. First, indicate the name of the product. For this, we are going to indicate that the name is Raw Material 1, and here we indicate that we buy this product. Also, indicate the unit cost, which is the amount or how much it costs us to buy this raw material.

So let's say for each unit, it costs 10 cedis. We are tracking inventory, so we click or toggle on this and then indicate the initial quantity that we have. So let's assume we have 100, and then we can click on Save to create the product. From here, we're going to create two additional raw materials and then the finished product. We've created all our raw materials.

Now let's create our finished goods. Here, we indicate that it's a product that we actually sell and don't buy. So we indicate the selling price if we have one; if not, we can proceed without one. Let's just say that the selling price is 10 cedis. We can toggle this on and then track inventory.

Currently, we don't have any quantities, so we save. We can see now that all our products have been created, from the raw materials to the finished goods. So we click on adjust inventory to record the production. Just like this, we just click on +New, and we select the raw materials that we are going to use in this production. So we have raw material 1, raw material 2, raw material 3, and then our finished goods.

Thus, we'll be using these raw materials to produce one particular finished good. So depending on the quantity of each that we use, we just have to adjust it. But here we are not increasing the quantity of material but rather reducing it as we are using it in the production of another good.

So let's say we use about 20 units of this raw material 1 in the production. We use, let's say, 10 units of this material 2 and then we use maybe 15 of this for this particular product, right? Here, at the end of the production, we have about 100 quantities of a finished good. Then we would have to indicate the unit cost of each. How do we get the unit cost of each? Kindly scroll up to Raw Material 1.

You will see that we have an adjustment amount here, and this is the total value being used. We add all the adjusting amounts for the three raw materials, and we will get 475. Divide this by the total value of finished goods that we are producing, and that is 100. So it means that the unit cost, or the unit material cost, for each unit of the finished goods, is 4.75, and then we can save this. But before we save it, we have to actually give it a name, indicating in the notes, let's say, production.

Let's make it Production 1 or Production 2 and we can't save it, or you can just give it a name to describe this particular production, and then you can save it after everything is done. From here, you can go to products and services to see the increase in finished goods as well as the reduction in the quantity of the others.

Thank you so much for making time to join us. We hope this tutorial was helpful. Have a lovely day.