There may be a glitch in the system, or I am making an error.
I need help from anyone with knowledge of how inventory input works on turbotax. Nothing that is available on-line is helping me.
Here is the info that I think is needed for a solution. All approximate numbers. I have a starting year inventory of "$6k" (It is incorrect and too low). I have material purchases of "$3k". I have calculated my actual materials cost for sales is "$10k". Sole proprietorship. No labor costs. Minor additional costs that should not affect results.
Questions:
1) Should I input my best estimate of year end inventory to begin (asked for on first screed) or leave it blank and let the system do it? When I leave it blank it seems to explode year end inventory even more. I am getting inaccurate year end inventories either way.
2) Are material purchases in a separate category from the actual materials that I used. Where should they go? Should they be separate or together?
3) My year end inventory is exploding because there is something wrong with my inputs. I don't know how this affects my taxes. No changes that I make are actually converting to a dollar of change in my taxes even with a difference of as much as $10k in year end inventory. It is all very strange.
4) Can I recalculate my opening inventory upward with a note of explanation, and if I do, is it likely that this will fix things?
I appreciate your help in this matter.
Kathy
