Cost of Goods Sold Help for SMLLC

[ZachV]

Good day,
I have a SMLLC and have a question regarding the “Does your business have inventory or cost of goods sold?” Last year, I went with this method, but I want to make sure I am doing it correctly. For the 2022 tax year, I sold photography calendars. Under Cost of Goods Sold Line 36 I stated I spent $1000 to purchase the calendars and had an inventory cost of $40 line 39 at the end of the year, which I did not sell until 2023. Now I am doing taxes for the 2023 tax year, I spent another $1400 on calendars $1100 my cost, of which I sold in 2023, and $300 my cost of calendars in 2024.
So when doing my 2023 Taxes: Should I put $40 Line 35, $1100 Line 36, and $300 Line 41?
Second question – I purchased shipping packages/cardboard to mail the calendars – should I put that on line 38 under Costs of Good Sold or under Other Expenses?
Thank you,
Zach Vogel

[Mike9241]

Nope

line  35 and 41 are ok

line 36 is purchases for the year which you said was $1400

your cost of goods sold should be $1140 + the cost of shipping package since you are not inventorying them 

$40 for the 2022 purchases sold in 2023 and $1100 for the 2023 purchases sold in 2023

I purchased shipping packages/cardboard to mail the calendars

line 38 or 39

[ZachV]

Great, thank you. I just want to clarify two things. 

Because I did not inventory the shipping supplies, they should be on line 38/39 or combined with line 36 cost so 1140+$250 in supplies. Also this will all be deducted from the $5700 I made from selling the calendars.