Beginning Inventory

Beginning inventory denotes a company's good value which it has for its sale during the starting of an inventory accounting period.

Calculator of Beginning Inventory

Formula of Beginning Inventory

Beginning inventory = Cost of goods sold - Purchases + Ending inventory

Example of Beginning Inventory

A company sold its good for $10000 and purchased new inventory for $5000. Ending inventory balance was $20000. Calculate the Beginning Inventory cost of that product.

Given

Cost of goods sold = $10000
Purchases = $5000
Ending inventory = $20000

To Find

BI Cost

Solution

Beginning inventory = Cost of goods sold - Purchases + Ending inventory
= 10000 - 5000 + 20000
= 5000 + 20000
= $25000