rhonda5838
Level 2

Business & farm

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!