The liquid paint itself is a direct material, which is a cost accounting term.
On Schedule C, the paint falls under the supplies category.
Use this category to categorize items you buy and then sell or use to make the products you sell. This includes raw materials, packaging, and shipping.
You can categorize these types of transactions as supplies:
- Art supplies
- Fabric and other craft materials
- Wood and metal supplies
- Food and beverages you sell as packaged goods, or you use as ingredients
- Fitness equipment you sell to clients
- Learning materials (books, notebooks, flashcards, and so on) you sell to students
- Organization materials or systems that you sell to clients
- Home furnishings you restore or upcycle and re-sell
- Specialized paper for photos or print-making
@hunnybuns2009
