Cost of good shipping question

[TJR2023]

So if i purchase an item for resale, the shipping  cost will just be added to the total cost of that one item as the total cost of goods for that 1 item. But what if i purchase a number of items for resale, do i evenly split the shipping cost to each item or does it matter?

[tagteam · Accepted solution]

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@TJR2023 wrote:

do i evenly split the shipping cost to each item or does it matter?

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If you maintain an inventory, it does not matter. You simply add the shipping costs to the cost of your purchases.

If you do not maintain an inventory, but rather report each item sold as an individual expense (e.g., other expenses), then you need to allocate a portion of the total shipping costs to each item.

[TJR2023]

if i did choose to report by individual item, where would i report this? 

[tagteam]

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@TJR2023 wrote:

if i did choose to report by individual item, where would i report this? 

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The expense would be entered on Line 27a in Part II (Other expenses).