LaVida Posted January 29, 2009 Share Posted January 29, 2009 ok, for Inventory. I accounted for the left over ingred's and resellable items (electric tart warmers.. things of that nature), but what do you do with the products you have left... Do you count the COG for those assembled products or count them as a whole (retail price?)..... I'm rushing out the door so if it doesn't make sense please forgive me.... HELP! Quote Link to comment Share on other sites More sharing options...
Wildcrafter Posted January 29, 2009 Share Posted January 29, 2009 My bookkeeper says cost of goods sold for the retail products sitting on the shelves waiting to be sold. Quote Link to comment Share on other sites More sharing options...
LaVida Posted January 29, 2009 Author Share Posted January 29, 2009 My bookkeeper says cost of goods sold for the retail products sitting on the shelves waiting to be sold.Thank you so much for answering. So for all the assembled items - calculate the Cost of Goods and throw that figure in w/ the COG figure? (Just so I understand)... Quote Link to comment Share on other sites More sharing options...
Wildcrafter Posted January 29, 2009 Share Posted January 29, 2009 Yes, that's what my bookkeeper tells me to do. I know it's confusing. That's why I hired her... let her do her craft and I get to do my craft. Quote Link to comment Share on other sites More sharing options...
LaVida Posted January 29, 2009 Author Share Posted January 29, 2009 Yes, that's what my bookkeeper tells me to do. I know it's confusing. That's why I hired her... let her do her craft and I get to do my craft.You're right, I need one of those too. So basically treat them as if they aren't assembled and count them....wait, so COG ... now I'm more confused. I'll just put a little spread sheet together for the remaining retail items and calculate their COG and let good ol' Ted (the H&R block rep I work with every year) figure it out. Quote Link to comment Share on other sites More sharing options...
LaVida Posted January 29, 2009 Author Share Posted January 29, 2009 so what this tells me to do is simplify my spending thoughout the year and buy only what I need.... Keep it to a minimum. Quote Link to comment Share on other sites More sharing options...
Wildcrafter Posted January 29, 2009 Share Posted January 29, 2009 Say you have a bar of soap that you retail for $6.00, but it costs you $1.67 to make (which includes your labor, of course!). For inventory purposes, you add $1.67 to the cost of goods sold tally for that particular bar of soap. Of course, if you have 25 bars of the soap that cost you $1.67, it would add $41.75 to the tally. And then you go on to the next item that has a different cog. Quote Link to comment Share on other sites More sharing options...
LaVida Posted January 29, 2009 Author Share Posted January 29, 2009 so what this tells me to do is simplify my spending thoughout the year and buy only what I need.... Keep it to a minimum.ooh ooh, I just thought of something.... I can use this format.Determine Ending InventoryEnding inventory costs are usually determined by taking a physical inventory of products, or by estimating. Ending inventory costs can be reduced for damaged, worthless, or obsolete inventory. For damaged inventory, report the estimated value. For worthless inventory, you must provide evidence that it was destroyed. For obsolete inventory, you must also show evidence of the decrease in value. Consider donating obsolete inventory to a charity.Since i am revamping and discontinuing those items I might as well donate it! Is it too late? I just spoke to my mother - it is too late. I would have had to do this by the 31st. I need to figure this out for this year.Another question:For those who participate in things like The Little Black Box how is that done on your taxes. Determine th COGS then what? Quote Link to comment Share on other sites More sharing options...
LaVida Posted January 29, 2009 Author Share Posted January 29, 2009 Say you have a bar of soap that you retail for $6.00, but it costs you $1.67 to make (which includes your labor, of course!). For inventory purposes, you add $1.67 to the cost of goods sold tally for that particular bar of soap. Of course, if you have 25 bars of the soap that cost you $1.67, it would add $41.75 to the tally. And then you go on to the next item that has a different cog.Ok, so even if they are leftover items still use this formula? If it's that simple that's cool with me. Thank you for your help. The school looks very exciting by the way. Those soaps look yummy! Quote Link to comment Share on other sites More sharing options...
Wildcrafter Posted January 29, 2009 Share Posted January 29, 2009 As in leftover items, do you mean leftover retail stock? If so, then yes.Thank you for the compliments!PS...when I clicked on your website address, I got the error message that I was forbidden by the server to enter site. Quote Link to comment Share on other sites More sharing options...
LaVida Posted January 29, 2009 Author Share Posted January 29, 2009 As in leftover items, do you mean leftover retail stock? If so, then yes.Thank you for the compliments!PS...when I clicked on your website address, I got the error message that I was forbidden by the server to enter site.yes, that's what i meant. (How unprofessional - "leftovers"...*l*) Retail Stock.... now I just came across this too:Tips: REMEMBER: You can only deduct cost of goods sold for the inventory you sell. If you purchase or make products to sell, and you don't sell any products, you can't deduct these costs.If your business has less than $1 million in sales/receipts annually, you do not need to report inventory. And about my site... a big fiasco, but it's it's being repaired. And you're welcome. I admire nature.... I'm revamping to include EO's only. I made Tangerine/ Lemongrass, Anise/Vanilla Bean and Peppermint Stick (swirled with pink clay) so far. I've been making Lavender w/ buds and Pachouli w/ a little ground patchouli incorporated...... Quote Link to comment Share on other sites More sharing options...
Wildcrafter Posted January 29, 2009 Share Posted January 29, 2009 Good for you to offer products with EOs only. I don't use any FOs, petroleum ingredients of any kind, synthetic colors or preservatives. I know that is controversial for this kind of forum, so I don't get into it. Especially since I have seen some abuse from a few unhappy members on this forum directed at folks who are just trying to learn. I do include my inventory, even though I don't make quite :smiley2: a million dollars per year in sales because doing so gives me a bit of a break on my taxes. Not the retail sales taxes, but the federal taxes. Quote Link to comment Share on other sites More sharing options...
LaVida Posted January 29, 2009 Author Share Posted January 29, 2009 Good for you to offer products with EOs only. I don't use any FOs, petroleum ingredients of any kind, synthetic colors or preservatives. I know that is controversial for this kind of forum, so I don't get into it. Especially since I have seen some abuse from a few unhappy members on this forum directed at folks who are just trying to learn. I do include my inventory, even though I don't make quite :smiley2: a million dollars per year in sales because doing so gives me a bit of a break on my taxes. Not the retail sales taxes, but the federal taxes.I am incorporating plant powders and clays for color. I went cold turkey (EO) a few months back... I have been experiencing clarity and new direction and ideas. I'm excited about this actually. Blending seems trying but it's fun. Quote Link to comment Share on other sites More sharing options...
Wildcrafter Posted January 29, 2009 Share Posted January 29, 2009 Keep up the good work. I'd be happy to help you if you need anything. I'm off for a hike now and then get ready for a soap making workshop I am teaching at a Country Living Expo on Saturday. I am so looking forward to it. I will have an information booth for my herb school and will be able to take classes all day on farm practices. Quote Link to comment Share on other sites More sharing options...
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