COGS fo Personal Items put into Business Inventory

Hi,

I have been searching everywhere and have yet to get a clear answer on this. I am a sole proprietor reseller and buy things through my business specifically to resell. However, there are some items I have owned personally that I have now transferred into my business inventory. I understand that if I have no records of how much I originally purchased these items for, I must show an increase in inventory of their fair market value. However, when one of these items sells, how do I figure it's COGS? Is it still its FMV? If that is the case, it seems to me to be deflating my overall business profit margin, as the business never incurred the FMV cost for the item I transferred over.

Can someone help me understand how to understand this and figure COGS correctly in this situation?

Thanks!

posted