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aherman22
New Member

What if inventory was not calculated at the end of the fiscal year?

 
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TurboTaxSusan
Moderator

What if inventory was not calculated at the end of the fiscal year?

There are several ways of determining your end inventory.
If you can't do a physical count, you can use the formula: Beginning Inventory + Purchases - Cost of Goods Sold (COGS) = Ending Inventory

You can also use the Gross profit method formula:
Total Cost of Goods Available for Sale (= Beginning Inventory + COGS) - Estimated Cost Of Goods Sold (= Gross Profit x Sales) = Ending Inventory

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