Purchasing inventory-1st time help needed!

[Loonsong]

A new client never keeps inventory on hand. They design and sell customized systems and order from multiple suppliers the components of the systems, as needed. The boss got a great closeout deal and decided to order a dozen widgets, intending to keep them in inventory until they are needed for a customer job. He wants me to put them into inventory and track them. I have never done this before and need step-by-step assistance. It's important to note that they are not currently using any type of job costing, so I will be posting a message for step-by-step assistance with that. For now, please help with inventory.

- Do I change the set up of the item? The widget is already set up as an item, just like all the other components they purchase.

-One item is already being used as a demo. I don't know if it will be sold, and for how much.

-I'll want a monthly report of what's left in inventory for this item.

Your help is appreciated on those and any other issues you can think of. Thanks.