Your Opening inventory would be the value of the raw materials, goods in process, and finished goods that you had at the start of the year or when you started the business (if you didn’t start right at the beginning of the year).
Your Closing inventory would also be the value of the raw materials, goods in process, and finished goods you have, but at the end of the year.
For example, if you make wooden toys, and at the start of the year, you had 500 pieces of wood that you paid $1 each for, then your opening inventory would be $500. If at the end of the year, you had only 100 pieces of wood, and 50 finished toys worth $2 each, then your closing inventory would be $200.
If you have TurboTax Live Assist & Review, here is how to talk to a Tax Expert: https://turbotax.community.intuit.ca/community/navigating-turbotax/help/i-m-using-turbotax-live-assi...
Sign In
Canada (English)
EN
