does cost of sales include inventory
separate your inventory cost from the total price on your inventory invoice the inventory cost includes the costs for the items you purchased without consideration of taxes shipping or delivery your inventory cost is also referred to as the list price determine the sales tax you paid for the inventory in general the sales tax is listed at the bottom of your invoice debit your inventory account with the amount of your inventory cost entering the amount as a debit or negative figure results in an increase to the book value of your inventory