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For End of Year Inventory do I use the full retail price for items inventoried?

Forum|Forum|7 years ago
June 5, 2019
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Do I use the full retail value of hand-made jewelry inventory, when calculating Cost of Goods Sold?

Best answer by Coleen3

No. The purpose of inventory is to keep track of your purchases. You use the amount you actually paid. When you sell an item, the amounts you receive as income from the sale is considered gross income. The difference between purchase price and sales price is your profit.

C

Coleen3Answer

Employee

No. The purpose of inventory is to keep track of your purchases. You use the amount you actually paid. When you sell an item, the amounts you receive as income from the sale is considered gross income. The difference between purchase price and sales price is your profit.