Can items purchased over the last several years be entered into COGS section under "Purchases" for new startup business?

[maddog072349]

My wife is starting a business that deals with making jewelry and other crafts. She purchased beads and other items used to make the final products over the past several years. Can this "raw material" be entered in the COGS section under "Purchases"? Does this include items purchased in prior years before the business was officially formed?

[CherylW · Accepted solution]

Purchases is generally only what you paid for this year.

If this is her first year in business, though, she can put the purchases into Cost of Purchases.