Question & Answer: When dealing with COGS, how do you calculate ending inventory when you are only provided with sales, beginning inventory, and purchases?…..

When dealing with COGS, how do you calculate ending inventory when you are only provided with sales, beginning inventory, and purchases?

Expert Answer

Cost of Goods Means the net amount of goods which are sold by an enterprise during a period.

Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: When dealing with COGS, how do you calculate ending inventory when you are only provided with sales, beginning inventory, and purchases?…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
Order Essay

It can be calculated as follows:

Beginning Inventory XX
Add: Purchases during the period XX
Total Inventory Available for Sale XX
Less: Closing Inventory XX
Cost of Goods Sold(COGS) XX

When Sales, Beginning Inventory and Purchases are given, we can calculate the Ending inventory as follows:

Beginning Inventory XX
Add: Purchases during the period XX
Total Inventory Available for Sale XX
Less: Inventory Sold XX
Closing Inventory XX

Any of the above variables can be calculated with making the changes in the above format.

Still stressed from student homework?
Get quality assistance from academic writers!