I have a business that produces handmade items for sale. When I calculate the value of my inventory is it based on the finished items ready for sale?
Example:
Number item wholesale cost total
10 baskets 10. 100.
I have assumed that wholesale cost of all my inventory was what I should use for the inventory value on my return. Is this correct? We do not pay any labor costs and the cost of the other materials has been reported in the past (using up materials this year). Once created they have value, but very little before. We make shaker boxes for sale on Etsy.
