How to calculate Ending Inventory in cost of goods

Accounting Oct 24, 2020

Expert Solution

To calculate Ending inventory in cost of goods sold firstly, we have to find cost of goods available. To calculate it, add the cost of beginning inventory to the cost of purchases during the period. Thus, we will get goods of goods available.

After this we have to compute cost of goods sold. To find the this, we have to multiply the gross profit percentage by sales. then we will get cost of goods sold.

Finally, Subtract the cost of goods available for sold from the cost of goods sold to get the ending inventory.

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