Now there is the question you asked (inventory or assets) and the one that the accountant will eventually ask you in setting up your taxes (materials or supplies).  So I'm answering both. 

 

Costumes:  If you rent your costumes choose inventory.  If you don't rent, consider it an asset.  Inventory is something that you sell, or resell routinely.  Consider that a rule.

 

Set materials are typically expenses, in your case most expenses will be classified as supplies, not materials from an accounting classification.  The difference is that for regular businesses  'supplies' support the business, while 'materials' are part of the product sold--basically everything that goes into the box which you give to your customer, including the box you ship in.  So for ordinary businesses supllies might be fliers, envelopes, ink  for a printer.  While materials might be (toy manufacturer) wood, screws, paint, etc..  Now for you, since you don't ship the toy so wood, screws, etc are supplies.

 

If you don't rent costumes or sets, you want all of what you listed (set materials, costumes) to be assets, not inventory specifically.  And all of what you listed are 'supplies' not materials for tax purposes.

 

Now for Website expenses.  Neither asset nor inventory.  Take all website expenses and consider them expenses.  So add a category to Quickbooks when you write the checks and call it "Website Expenses".

 

Consider this the other rule: Assets are things that in a pinch you can sell.  In a pinch you can sell your wood, but you won't be selling your website. (Now if you sell adspace on your website, its easier to consider that a separate income source)

 

 

The other clear guide is the question--would you depreciate them on a tax return?  I'm guessing 'no'.  Besides the individual value is one small enough to expense them.

 

Best of luck!