# How do you calculate ending inventory?

The two methods for calculating ending inventory include the gross profit method and the retail inventory method. The ending inventory is the number of units of inventory that the company on hand at the end of an accounting period. This figure is need for various accounting calculations, including cost of goods sold.

Using the gross profit method, add together the cost of the beginning inventory and the total cost of additional items that were purchased during the period to get the cost of goods available. Subtract the estimated cost of goods sold by the cost of goods available.

With the retail inventory method use the proportion of the retail price to costs in prior periods for a more exact amount.

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Q&A Related to "How do you calculate ending inventory?"
 1. Ending inventory can be determined by plugging the appropriate values into the following formula: Beginning inventory + net purchases - cost of goods sold (CoGS) = ending inventory http://www.ehow.com/how_5953648_calculate-ending-i...
 If you are planing on calculating inventory turns it will take some time to understand it. Are you planning on doing inventory? If so this is important. For more information look http://www.ask.com/web-answers/Science/Chemistry/h...
 if it is the work in process account(which it sounds like) do this. Beginning inventory.Direct Materials Used.Direct Labor.Manufacturing Overhead.Cost of Goods Manufactured. =Ending http://answers.yahoo.com/question/index?qid=201010...
 Beginning Direct Materials. Add: Materials purchased during period. Less: Materials Used during period. Equals: Ending Direct Materials. http://wiki.answers.com/Q/How_do_you_calculate_the...