You need to put that in your Inventory.
Go to your wife's Business in Turbo Tax Self-Employed, and then Inventory /Cost of Goods Sold.
Put the method used to value your inventory (most people use cost). On the next screen, put the inventory as of December 31, 2016. The next screen will ask for Cost of Purchases, and other Inventory items.
The figure that is left over is the Cost of Goods Sold, which is a deduction from her total selling income.
