Product Components & Inventory

[mrindex]

We contract a third party to manufacture our products. However, we purchase all the component parts ourselves from our own vendors and ship the parts to the third party manufacturer. I am setting up our accounting and need to know how to categorize the component parts. Do I classify them as "Inventory Assembly," "Inventory Part" or "Non-Inventory Part?" Do I classify them as "Inventory Part" but as a sub-item of our actual finished good product? Some of the component parts are used in all products, but others are specific to a product. Presently, we have two finished good products we will be selling, but we will be expanding this to three, four, or five by the end of the year. I would appreciate any advice on how these classifications would apply to cost of goods sold, finished goods inventory, etc. Thank you.