Here is how to report this for your business that generated a 1099:
1. Once you have navigated to your business (Federal > Wages & Income > elf-employment income and expenses), choose "Add expenses for this work"
2. Go to "Less Common" and page until you get to "Inventory"
3. Choose the pencil to the right of inventory and say "Yes, I have inventory to report"
4. Answer the questions about your inventory, then you will get a screen called "Let's get the cost of goods for your work."