Define which raw materials go into finished products and how much overhead cost to apply.

Go to Production → Recipes (Bill of Materials). This is where you define the ingredients for each finished product.
Click 'New Recipe'. Pick the finished product from your product catalog, set the output quantity per run, and add components.
For each component, specify quantity per output unit and wastage percentage. Wastage accounts for spillage, trim loss, or evaporation during production.
Capture fixed costs like electricity, labour, or packaging that aren't tracked as inventory line items. This rolls into the finished good's unit cost.