I'm a bit confused about entering my expenses for my business and COGS.
I keep inventory for my Etsy business. I understand the beginning and ending inventory amounts and that materials are different from supplies, but I am confused on the page in Turbo Tax where it is asking me for Cost of Purchases, Purchases Withdrawn for Personal Use, Labor Costs, Materials and Supplies, and Other Costs to Prepare for Sales.
I'm entering in the Cost of Purchases line item the total of cost of my materials that go directly into my finished products.
But for the Materials and Supplies and Other Costs to Prepare for Sales line items, do I enter a lump sum amount of all of supplies here? And then all of my other expenses in the Other Costs, such as shipping and fees?
If so, then do I not need to enter any expenses that Turbo Tax asks about, such as Advertising, Supplies, Assets, Office Expenses, and Taxes and Liscences?
Or do I mixture of the two? The "Learn More" buttons are very vague and don't help.
I also use CraftyBase for keeping inventory and it has given me this report to help. See attached. I'm just not sure where to enter each section. Thanks in advance for your help!
