LIFO method The last in, first out (LIFO) method is another common way to calculate ending inventory. It assumes that products purchased most recently are the first items to be sold. Using the same example as above, COGS would be calculated with the new $9 candle supplier price point (sin...
Formula to Calculate Ending Inventory 3 Methods to Calculate the Ending Inventory #1 - FIFO (First in First Out Method) #2 - LIFO (Last in First Out Method) #3 - Weighted Average Cost Method Examples (with Excel Template) Example #1 Example #2 Calculator Final Thoughts Recommended Articles ...
LIFO method The last in, first out (LIFO) method is another common way to calculate ending inventory. It assumes that products purchased most recently are the first items to be sold. Using the same example as above, COGS would be calculated with the new $9 candle supplier price point (sin...
Total cost of goods available for sale - cost of goods sold = ending inventory PRO TIP: Confused with all the math? Speed things up with this free profit margin calculator. Retail method Designed for stores that do physical stock checks, you’ll need a few metrics on hand before using the...
You’d then use the FIFO method to calculate ending inventory: Beginning inventory ($5,000) + new purchases ($2,400) - COGS ($910) = ending inventory ($6,490). LIFO method The last in, first out (LIFO) method is another common way to calculate ending inventory. It assumes that pro...
Speed things up with this free profit margin calculator. Retail method Designed for stores that do physical stock checks, you’ll need a few metrics on hand before using the retail inventory method to calculate ending inventory: Cost-to-retail ratio: (Cost / retail price) x 100 Cost of ...
You’d then use the FIFO method to calculate ending inventory: Beginning inventory ($5,000) + new purchases ($2,400) - COGS ($910) = ending inventory ($6,490). LIFO method The last in, first out (LIFO) method is another common way to calculate ending inventory. It assumes that pro...
Speed things up with this free profit margin calculator. Retail method Designed for stores that do physical stock checks, you’ll need a few metrics on hand before using the retail inventory method to calculate ending inventory: Cost-to-retail ratio: (Cost / retail price) x 100 Cost of ...
You’d then use the FIFO method to calculate ending inventory: Beginning inventory ($5,000) + new purchases ($2,400) - COGS ($910) = ending inventory ($6,490). LIFO method The last in, first out (LIFO) method is another common way to calculate ending inventory. It assumes that pro...
That would make the ending inventory formula: Beginning inventory ($5,000) + new purchases ($2,400) - COGS ($1,170) = ending inventory ($6,230). Weighted average cost method The weighted average cost (WAC) method is the middle ground between FIFO and LIFO. It gives an average of ...