Question

How can get the end value of inventory for the fiscal year?

Forum|Forum|3 years ago
April 26, 2022
1 reply
0 views

No text available

There are several ways of determining your end inventory.

The most accurate way to calculate closing inventory is by doing a physical count, then determining its fair market value (FMV). However, if you can't do a physical count, you can use the formula: Beginning Inventory + Purchases - Cost of Goods Sold (COGS) = Ending Inventory

You can also use the Gross profit method formula:

Total Cost of Goods Available for Sale (= Beginning Inventory + COGS) - Estimated Cost Of Goods Sold (= Gross Profit x Sales) = Ending Inventory