Entering inventory by ounces and pounds

[Gourmet1]

I am struggling to figure out a formula with entering my loose teas which I receive in bulk, but sell in 3.5 or 4 ounce bags. Everything I've tried has ended up making my inventory cost incorrect. 

I buy loose tea by the pound. I then bag the tea into 3.5 or 4 ounce bags to sell individually. When I enter the tea on Square I enter by the individual bags (not one pound bag) so I know how many bags I have in stock. The problem is with entering the unit cost. Example: I receive a one pound bag of a certain tea flavor for $20.00. I divide the one pound bag into four (4) ounce bags and price them $10.99 ea. I then enter the 4 bags into Square by the bag. If I put the unit cost as 20.00 and enter 4 bags, then mistakenly I have $80 in inventory. If I enter the unit cost per bag as $5.00, then when I go to place a purchase order through Square and enter one pound, the cost shows up as $5.00 a pound instead of $20.00. 
This is a lot of information but if anyone has a solution, please share. I need my end of the year inventory to be correct. Thank you!

[frances_a]

Hello @Gourmet1 ! 

I'll tag some of our Super Sellers here, so they can provide some insight. 

@HC_Charlie @TCSlaguna @londontea

Thank you for your post ✨

[Candlestore · Accepted solution]

@Gourmet1 ;

 Did you look at the sell by Units Square has?

I buy my candles in Bulk  144 by the case.

Mostly I sell them at 1 at a time single units or by the Dozen of a Box of 12.

Now when I sell either the box or singularly it reduces the overall inventory from the singel case... or multiple case of the SAME item.

7237-stock-conversion-sell-by- unit 

So when I buy my case of 144 at a time my COG is based on the price for a case / 144 units.   I can not enter that I bought 1 case of 144 candles for X in Square I have to do the math to figure out how much each tapper cost.  Price / quantity bought and shipping divided over the entire order from wholesaler to me.  This gets me close to the actual cost.  Now with you buying 1 lb you may have to calculate the price per oz or by half oz to enter it correctly with Square.

[Gourmet1]

Ok thank you for your help with this. I will give your formula a shot!

Kimberly
The Grateful Gourmet