I was able to fill out the BOY and EOY inventory but when it took me to the next page (cost of your goods page) it was here that I needed clarified. My question is regarding this page which list COST OF PURCHASES, MATERIALS AND SUPPLIES, and OTHER COSTS TO PREPARE FOR SALES. I am confused what these 3 categories represent. I have my receipts for the year that I purchased for the following reasons:
Ingredient that become the product (example: oils, butters, fragrances etc.)
Jars, bottles, labels (product packaging)
Boxes, bubble mailers etc. (for shipping)
Which one of the above expenses goes on the line for Cost Of Purchases, Material & Supplies, and Other Costs To Prepare For Sales?
Just to clarify what you said I am to put my ingredients (oils, butters, fragrances and the jars, labels etc. on the Material & supplies line and my boxes, bubble mailer etc. on Other Costs To Prepare For Sales line.
What would I put on the COST OF PURCHASES LINE? Everything else on this page was self explanatory it was just those 3 lines that I was not sure of. I just want to fill everything in correctly and would hate to make any mistakes. If you could guide me on what goes where on these 3 lines I would be forever grateful. Thanks again!
