Your inventory for the beginning of 2023 should be the same as your ending inventory for 2022. To calculate your 2023 ending inventory you start with your beginning inventory,
Beginning Inventory
Add Cost of Purchases
Less Cost of Personal Use Items
Less Cost of Items Sold
Equals Ending Inventory
If you are an eBay reseller, you do not need to consider cost of labor, supplies, and materials for your Inventory purchases. Those costs are added to inventory when you manufacture products. Keep it simple. Deduct those costs as expenses, if you have them. If your actual ending inventory (if you count it) does not equal the calculation above, you either have an accounting error or inventory shrinkage.
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