Let me try to get a bit of clarification in my own mind about COGS… let me paint this hypothetical picture of a thriving young Alchemy business. They started their business on Jan 1st.. (to make the story simpler), and through out the year they periodically purchased several shipments of lead, which they transmute into Gold (making a tidy profit I might add).
Come the end of the year, and after referring to Outright, it was noted that during that calendar year $20,000 of lead had been purchased… but checking storage, shows that I still have $1000 of lead that is unused.
So… the question is… for the taxable year, Outright shows a COGS of $20,000, but actually only $19,000 was ‘sold’… shouldn’t the COGS column say $19,000 and the COGNQYS (Cost Of Good Not Quite Yet Sold) column read $1,000?
Since the COGS number directly affects the ultimate ‘Net Profit/Loss’ figure…how should ‘inventory on hand’ be categorized from Outright’s perspective?