Get your taxes done using TurboTax


@tommy8849 wrote:

It asked enter cost of purchases I entered only the cost that I sold. Where should I have entered the total cost? 


That is actually the key; you should have entered the total cost of your purchases in "Cost of Purchases".

 

The formula is actually very simple:

 

Beginning Inventory  PLUS  Cost of Purchases MINUS Ending Inventory EQUALS Cost of Goods Sold.