How to Simplify Your Cost of Goods Sold Accounts in QuickBooks

When you are creating your Cost of Goods Sold accounts, consider using summary accounts, such as material, labor, and subcontract, and letting your Item List track more detail. For example, if you are a construction company and you have expenses for site work, concrete, framing, painting, and so on, rather than have a COGS account for each cost type, use the Item List. See the section in Chapter 4  of QuickBooks 2012 In Depth titled “Adding an Item” for more details. Reports by item are available to break down the Cost of Goods Sold account into more detail.
From Laura Madeira’s QuickBooks 2012 In Depth