Sold a few units and inventory expired in 2017, discontinued item in 2017. No inventory left (0 value) 12/31/ 2017. No new inventory in 2017. Is the cost of purchase 0?

[Tweek75]

My last inventory purchase was in 2016. I have a beginning 2017 inventory value and don't have any inventory left at the end of 2017. This is due to expired inventory that could no longer be sold and I did have some sales. The next screen is what I am not certain of. Can you walk me through? I have no labor costs and other costs involved...

[IsabellaG · Accepted solution]

Your Purchases would be zero, but your Cost of Goods Sold would be equal to the amount of beginning inventory that got used up in 2017.  TurboTax performs the calculation  based on your entries about your inventory.

I'm assuming that you only sold old inventory, and have no additional costs that you paid out in 2017. So on the screen Let's get the cost of your goods, don't enter anything. You've already taken care of your inventory when you entered beginning and ending inventory on the first screen.

The screen that follows shows your gross profit, which is your sales minus the inventory that you used up/got rid of.

[Tweek75]

Thank you! I did it right 🙂

[IsabellaG]

Great!