Yes. Any legitimate business costs can be used on a schedule C, as long as your business is a sole proprietorship. Goods and other expenses acquired in 2012, are deductible in the year 2012. These costs reduce profits of the business. If more expenses than income, then there is a loss, enter on Form 1040 line 12 (in parentesis, to show a negative amount). This will reduce your total income, which, in turn, reduces your adjusted gross income. This will reduce your tax liability.
Good luck with your venture.