Question

What does it mean under total purchase during the year

Forum|Forum|3 years ago
January 21, 2023
1 reply
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under the category sell of products

The “Total purchase during the year” is how much inventory you bought in the year. For example, if you have a business that sells hockey sticks, and during the year you bought 1000 sticks at $20 each, then your Total purchase during the year would be $20,000.

Z

zoe-lifeindetailAuthor

I have a snacks manufacturing business - I purchase everything I need to make the product, package and market it. How would I figure this out for this question? I also am wondering what other costs is referring to. Thanks so much!

TurboTaxSusan

If you manufacture things, then your purchase would be the raw materials that you use to make those things. In your case that would be things like food ingredients, packaging like muffin cups, etc...