Cost of Goods Sold in Contracting Business

Contractors often put their direct materials and labor costs into the cost of goods sold account(s)--ie direct costs.

PLEASE mark this answer as solved or post additional questions. Thanks so much!!!

Michelle L. Long, CPA, MBA

Author of the book "Successful QuickBooks Consulting: The Comprehensive Guide to Starting and Growing a QuickBooks Consulting Business"

National Trainer for Intuit Trainer/Writer Network

Advanced Certified QuickBooks ProAdvisor

http://community.intuit.com/me...

Thank you very much Ms.Michelle but I was trying to know something else because I know material & labour will directly put under the COGS as direct cost.But the problem is that how I use COGS account in Quickbook whether at the time of purchase of material I Dr material and Cr COGS but where I put the bank or A/P. Please also help me about making the "Cost Center" of contracting business in quickbook as I want to record all material needs on different stages seprately or project wise.Is there any provision of this type of record keeping in Quickbook Pro 2009.