Originally Posted by Jwaldmann
Would you be able to explain that better?
We sell shirts so we have an inventory that we have not yet sold.
Do I need to fill out the 1125?
i guess so;you donot ypay tax on inv not yet sold. you need to file the form aslongas you have cogs in your biz. you are are a retailer, your cost of goods sold is equal to the cost of its beginning inventory plus the cost of its net purchases (the combination of these is the cost of goods available) minus the cost of its ending inventory aslongas you use periodic inv system.your cogs is also the cost of the net purchases plus or minus the change in the inventory during the accounting period.
Cost of goods sold can only be calculated for businesses that carry inventory to sell. COGS is often included in a company's monthly profit and loss statement.so sa said, your biz must complete and attach Form 1125-A if the biz reports a deduction for cost of goods sold