The two methods for calculating ending inventory insert the terrifying profit method and the retail inventory method. The ending inventory is the number of units of inventory that the company upon hand at the decrease of an accounting grow old-fashioned. This figure is need for various accounting calculations, including cost of goods sold.
Using the gross make a get bond of of method, accrual together the cost of the arrival inventory and the unchangeable cost of option items that were purchased during the times to acquire the cost of goods to hand. Subtract the estimated cost of goods sold by the cost of goods understandable.
With the retail inventory method use the proportion of the retail price to costs in prior periods for a more exact amount.