Inventory Calculator
Calculate ending inventory and cost of goods sold (COGS) using FIFO, LIFO, or weighted average methods. Essential tool for inventory management and accounting.
FIFO Results
| Beginning Inventory | $5,000.00 |
|---|---|
| Purchases | $15,000.00 |
| Cost of Goods Available | $20,000.00 |
| Ending Inventory | $2,000.00 |
| Cost of Goods Sold (COGS) | $18,000.00 |
| Gross Profit | $0.00 |
LIFO Results
| Beginning Inventory | $5,000.00 |
|---|---|
| Purchases | $15,000.00 |
| Cost of Goods Available | $20,000.00 |
| Ending Inventory | $2,000.00 |
| Cost of Goods Sold (COGS) | $18,000.00 |
| Gross Profit | $0.00 |
Weighted Average Results
| Beginning Inventory | $5,000.00 |
|---|---|
| Purchases | $15,000.00 |
| Cost of Goods Available | $20,000.00 |
| Ending Inventory | $2,000.00 |
| Cost of Goods Sold (COGS) | $18,000.00 |
| Gross Profit | $0.00 |
About Inventory Calculator
The Inventory Calculator helps businesses determine their ending inventory and cost of goods sold (COGS) using different inventory valuation methods: FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and Weighted Average. These calculations are essential for financial reporting, tax purposes, and inventory management.
How to Calculate Ending Inventory
To calculate ending inventory and COGS:
- Determine beginning inventory: The value of inventory at the start of the period
- Add purchases: The total cost of inventory purchased during the period
- Calculate cost of goods available: Beginning inventory + Purchases
- Determine sales: The total revenue from inventory sold during the period
- Apply inventory method: Use FIFO, LIFO, or Weighted Average to calculate ending inventory and COGS
Inventory Valuation Methods
FIFO (First-In, First-Out): Assumes the oldest inventory items are sold first. In periods of rising prices, FIFO results in lower COGS and higher ending inventory value.
LIFO (Last-In, First-Out): Assumes the newest inventory items are sold first. In periods of rising prices, LIFO results in higher COGS and lower ending inventory value.
Weighted Average: Calculates an average cost per unit based on all inventory available during the period, then applies this average to both COGS and ending inventory.
Why Inventory Calculation Matters
Proper inventory valuation affects your financial statements, tax liability, and business decisions. Different methods can significantly impact reported profits, especially in times of price fluctuations. Understanding these methods helps you make informed decisions about inventory management and financial reporting.