I really want to thank you so much for breaking down so thoroughly each individual section. I have asked this question the previous year and did not receive the valuable information you gave. I thought last year I understood but now I am upset that unfortunately I did not. Now that I understand what goes where I am forever grateful.
Based on the inventory equation
COGS=Beginning Inventory + purchases – Ending Inventory.
Example:
$2,682 (BOY) + $10,630.00 (YTD PURCHASES) - $5,510.00 (EOY) = $7,802 (COGS)
My only question is that everything entered on this page regardless of which of the 3 categories I use should be for the $7,802.00 (COGS) and NOT $10,630.00 (YTD PURCHASES)?
Once I get this last answer, I will have a complete understanding of the inventory process and be able to fill out my taxes with confidence.
Thanks again!
