Questions about Beginning Inventory and Ending Inventory

Hello,

I need help with understanding beginning inventory and ending inventory. Please assist.

1. Does value of inventory mean the cost I paid for at wholesale or the value of goods at retail I am selling for?

2. Let's say I started my e-commerce store in Jan 2022, and I purchased $1000 goods (the cost I paid for at wholesale) for resale in Jan 2022. During Feb and Nov, my sale increased, and I purchased $5000 more goods (the cost I paid for at wholesale) for resale. On Dec 31, 2022, my remaining inventory is $2000 (the cost I paid for at wholesale). What is Beginning Inventory and Ending Inventory in this case?

Thanks for the help.

438

Level 15

Mar 9, 2023 2:08:58 AM

Value of inventory means the cost you paid for it at wholesale.

Start inventory 0

Buys 6000

End inventory <2000>

COGS 4000

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Questions about Beginning Inventory and Ending Inventory