I run a very small photography business on the side. I'm reporting my income and expenses for the business on Schedule C. I carry a small inventory of framed photographs. TurboTax is asking for the value of my inventory which I know is the cost of the inventory (not the retail price). I've entered value of my inventory when asked. Then it asks me the "cost of purchases" to make the product. Wouldn't that just be the same as the value of my inventory? I'm confused at the difference. For instance, My beginning inventory is valued at $3000. My ending inventory is $2000. Wouldn't the cost to make the product be $3000 since that is what it cost me get the inventory?
Thank you.
