QB Issue Resolution:

You can, but as well as not being designed for combining inventory into another inventory item (cake), QB does not do waste and recipes well at all

On top of that your products have a short shelf life, cake, better to just expense the raw materials when purchased and use a service item for the sale of the cake

Resolution for Issue 'I would like to setup inventory for raw materials which I use in creating the final good (flour, sugar , etc which I use to prepare cake( final Good)' available: Yes (Solved).
Source: Intuit Community forum.

I would like to setup inventory for raw materials which I use in creating the final good (flour, sugar , etc which I use to prepare cake( final Good): this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for combining inventory
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