Hello schand4462,
I'm here to enlighten you on how the system tracks inventory.
QuickBooks Online records your purchases using the FIFO (First In, First Out) concept. In your case, since you first entered the parts that cost $5.00, these items will be the FIFO.
Once sales of inventory items are created, the system will adjust your assets and Cost of Goods Sold (COGS) accordingly. Thus, it will automatically detect the $4.95 cost.
You can check this article to know more: What is FIFO and how is it used for inventory cost accounting?
Furthermore, you can run some inventory reports to see your sales and inventory status: See your best sellers, what’s on hand, the cost of goods, and more.
I'm always around whenever you have concerns about inventory tracking.
