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Inventory Formula Excel Template

The document provides an example of calculating ending inventory using different methods. It gives the beginning inventory, purchases, and cost of goods sold for Company A to calculate ending inventory of $30,000. For Company XYZ, it provides beginning inventory, two purchase amounts, units sold, and calculations of ending inventory using FIFO, LIFO, and weighted average methods. Under FIFO, the ending inventory is $70; under LIFO it is $50; and under weighted average it is $58.

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Mustafa Ricky Pramana Se
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142 views4 pages

Inventory Formula Excel Template

The document provides an example of calculating ending inventory using different methods. It gives the beginning inventory, purchases, and cost of goods sold for Company A to calculate ending inventory of $30,000. For Company XYZ, it provides beginning inventory, two purchase amounts, units sold, and calculations of ending inventory using FIFO, LIFO, and weighted average methods. Under FIFO, the ending inventory is $70; under LIFO it is $50; and under weighted average it is $58.

Uploaded by

Mustafa Ricky Pramana Se
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Inventory Excel Template

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Let say company A has an opening inventory balance of $50,000 for the month of July.
During the remaining financial year, the company has made purchases amounting $20,000
and during that time, on the company’s income statement, the cost of goods sold is $40,000.

Particulars Amounts
Beginning Inventory 50,000
Inventory Purchases 20,000
Cost of Goods Sold 40,000

Ending Inventory is calculated using the formula given below


Ending Inventory = Beginning Inventory + Inventory Purchases – Cost of Goods Sold

Ending Inventory 30,000


Now let see another example to find ending inventory using FIFO, LIFO and Weighted average method.
Let say a company XYZ has beginning inventory of 10 unit with a unit price of $10 per unit. The market
environment is inflationary which means that prices of the unit are increasing in the market.
Company has made a few purchases in month 1 and 2 in this inflationary environment.

Particulars Units Price Per Units Total Value


Beginning Inventory 10 $10.00 $100.00
Purchases in Month 1 4 $12.00 $48.00
Purchases in Month 2 6 $14.00 $84.00
Total Inventory 20 $232.00

Let say that company has sold 15 units and they are left with only 5 units of inventory
Units Solds 15

FIFO Method

First 10 Unit will be sold at $10 per Unit $100.00


Next 4 Units will be sold at $12 per Unit $48.00
Next 1 Units will be sold at $14 per Unit $14.00
Total Sold Inventory $162.00

Ending Inventory is calculated using the formula given below


Ending Inventory = Total Inventory - Total Sold Inventory

Ending Inventory $70.00

LIFO Method

First 6 Units will be sold at $14 per Unit $84.00


Next 4 Units will be sold at $12 per Unit $48.00
Next 5 Units will be sold at $15 per Unit $50.00
Total Sold Inventory $182.00

Ending Inventory is calculated using the formula given below


Ending Inventory = Total Inventory - Total Sold Inventory

Ending Inventory $50.00

Weighted Average Cost Method

Average Cost is calculated using the formula given below


Average Cost = Total Value of Inventory / Total Number of Units

Average Cost $11.60


Total Sold Inventory is calculated using the formula given below
Total Sold Inventory = Average Cost * Units Sold

Total Sold Inventory $174.00

Ending Inventory is calculated using the formula given below


Ending Inventory = Total Inventory - Total Sold Inventory

Ending Inventory $58.00

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