How to account for Inventory?
I need to find out what should be expensed as costs of goods for Inventory and tax purposes.
This is a new business with a starting finished inventory on day 1 of $20250 the ending inventory is $27400. Finished inventory is priced at selling price. Of the $20250 starting inventory, all was sold by the middle of the year.
This is a manufacturing business with a material inventory on day 1 of $6300 with purchases during the year of $2525 and an ending material inventory of 3005.
Sales during the year were $60750.
On the end of the year all starting finished goods inventory of $20250 has been sold. This inventory was replaced during the year with newly manufactured goods. Some of the material used to manufacture these goods are in ending finished goods inventory and can't be expensed because they are unsold.
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