@rwom1217 , adding to reply from my colleague @Anonymous_ , it is called " Cost of Goods" ( COGS )and comprises what you paid for the purchase of inventory ( full price , half price or whatever ). When you add to inventory, you have note down what you paid for it.
At then of the year, you close your shop and take inventory again to see what is the value of your inventory.. The difference between start of year inventory plus added inventory throughout the year LESS year-end inventory is the cost of goods sold/ used up for the year ( you will need this for your earnings report and for tax liability computation,
Does this make sense ?
