Recipe-level costing for infused products
An edible, tincture or topical batch draws on multiple cost inputs — cannabis extract or distillate, non-cannabis ingredients, packaging and labor across formulation, production and quality testing. We build recipe-level cost sheets for each SKU so you know the true production cost of every product line, not just an average across the whole facility.
As formulations change or extract costs fluctuate with wholesale pricing, we update recipe costing so your margin analysis and your COGS position both reflect current reality rather than a stale standard cost.
Batch and lot tracking through METRC
Every production run has to be tracked from raw material intake through finished, packaged product in METRC, and your cost accounting needs to mirror that same batch structure. We tie direct materials, direct labor and allocated overhead to each METRC-tracked production batch, so the cost basis on your books matches the lot MED and the IRS would both expect to see documented.
Overhead allocation for a manufacturing facility
Facility costs like extraction equipment depreciation, commercial kitchen utilities, quality assurance testing and production-area rent can be capitalized into cost of goods sold under Treasury Regulation 1.471-11's uniform capitalization rules, while administrative, sales and marketing costs cannot. We apply a documented overhead allocation methodology that pulls in every eligible production cost without overreaching into disallowed territory.
Yield loss, spoilage and rework tracking
Infused product manufacturing carries its own loss patterns — spoiled batches, failed potency testing, packaging errors requiring rework. We track these losses against production records so cost variances are explained and documented rather than absorbed silently into an inflated per-unit cost.
