The inventory entries are used to calculate Cost of Goods Sold. This is a separate section of Schedule C that is not included in Business Expenses. The total is found on Schedule C Line 4 and the underlying calculations in Part III of that schedule.
Depending on the version of TurboTax that you are using, you may need to work through the Self-Employment interview to find the questions about inventory. Or you may see this topic on your self-employment business summary page.
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