Oh, and I should have also told you this, but you probably figured this out yourself,
For self employment income on a schedule C you enter the total gross income you received (including the product, parts or reimbursements) and then enter all your expenses. Product and parts would probably be entered as Supplies. Or you can use line 27a Other Expenses. Then only the Net Profit (or Loss) on Schedule C goes to your 1040 and gets taxed.
