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Use Price, not Cost (the latter being the cost to create). Keep in mind that the price of a +1 weapon is 2000 (+1 enchantment) + 300 (masterwork) + X (cost of the weapon), so a +1 Dagger is 2302 gp.
The basic rule for selling is that you sell items for one-half what it would cost to buy, so our hypothetical dagger can be sold for 1151 gp.
Keep in mind that some GMs might let you buy and sell at higher or lower amounts if you role-play the process or have special skills, but absent such adjustment by a GM, the basic rule is buy at full price and sell at one-half price.
You are correct on the masterwork prices for weapons and armor, good sir.
Also, don't throw the door wide open. Make them roll on a 75% chance of availability as per the rules in the Gamemastery guide. You should also use the rules in that book on settlements for price limits, but at low levels it may not matter too much.
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Crafting feats are a much more cost effective way to go for players, but also note the special time constraints (a bit of downtime for each item made, so they won't be making every item they have money for). If you want to "aid" them in their crafting, and they have the ability to make masterwork items with a skill, the Fabricate spell works wonders for skipping the starting item (non-magic) requirements for cheap (1/3 cost of buying one). Figure out the cost of the Fabricate spell, and then you know what it is good for (non-standard metals and such). It is especially good for making adamantine weapons with a hardness of 20 instead of 15.