The Cost of Ending Inventory Calculation: A Comprehensive Guide

The cost of ending inventory is the balance of the Inventory account at the end of the period taking into consideration the beginning inventory, the purchases during the year, and the cost of sales on January 24 and March 16. The calculations are presented in the summary table below, Cost of Sales Calculation (Weighted—Average Perpetual) Cost of units purchased and sold Date Transaction Units Cost Total January 1 Beginning inventory 595 x S 4.40 = S 2,618.00 January 24 Sale (395) x s 4.40 (1,738.00) 200 x S 4.40 880.00 February 8 Purchase 695 x $ 4.50 3,127.50 Number of units available for sale (NUAS) = 895 $ 4,007.50 March 16 Sale (395) x $4.478 (1,768.67) 500 X $4.478 2,238.83 June 11 Purchase 695 x S 4.50 3,127.50 Number of units available for sale (NUAS) = 1,195 $ 51366-33 COGAS 4 007.50 = $'— = $4.473 NUAS 895 First weighted—average cost per unit = Cost of ending inventory = $5,366.33