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March 24, 2025
Question

How do I determine my inventory value when everything I make is made to order?

  • March 24, 2025
  • 1 reply
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I make handmade crocheted goods to sell at a local gallery. I started and ended with zero additional completed items.

    1 reply

    TurboTaxSusan
    March 25, 2025

    For finished, manufactured, or constructed goods, you can include the following in the cost:

    - Cost of raw materials used

    - Cost of labour directly used to make the item

    - Reasonable share of overhead costs

     

    For raw materials purchased for use in a building or manufacturing process, you can include the following in the cost:

    - Invoice cost

    - Customs and non-refundable excise tax

    - Transportation costs

    - Storage costs (where significant)