Coach company budgeted purchases of Php 100,000

Formula for calculating the beginning inventory is = Cost of sales - purchases + ending inventory

The cost of sales are the product produced and sold in that particular period , purchases are the

Purchases are refer to inventory purchases on particular period

Ending inventory is closing inventory of the period

Data given:

Purchases: PHP100,000

Cost of sales: PHP 120,000

Ending Inventory: PHP 42,000

Opening or beginning inventory=120,000-100,000+42,000

                beginning inventory=PHP 62,000