Hey Baily,

You can do what you want on your financial statements, but for taxes no you cannot deduct your inventory until sold. Even for small business taxpayers.

Pub 538

"Treating inventory as non-incidental materials and supplies.

 If you account for inventories as materials and supplies that are not incidental, you deduct the amounts paid to acquire or produce the inventoriable items treated as materials and supplies in the year in which they are first used or consumed in your operations."

If someone has a source that allows the deduction I would love to see it.