Beginning Inventory Calculator
Determines the starting inventory value for an accounting period
Value of inventory at the end of the period
Total cost of goods sold during the period
Total inventory purchased during the period
Starting inventory value (ending + COGS - purchases)
Average of beginning and ending inventory
How many times inventory was sold and replaced (COGS / avg inventory)
Frequently Asked Questions
What is beginning inventory?
Beginning inventory is the value of unsold goods at the start of an accounting period. It equals the ending inventory from the previous period. It is a key component of the COGS formula: Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold.
Why is beginning inventory important for COGS?
Beginning inventory directly affects your cost of goods sold and therefore your gross profit. An error in beginning inventory flows through to COGS, gross profit, net income, and income tax. It is also audited for accuracy because misstating it can misrepresent profitability.
How do I value my beginning inventory?
Common methods are FIFO (first-in, first-out), LIFO (last-in, first-out), and weighted average cost. FIFO assumes oldest items sell first, resulting in lower COGS during inflation. LIFO assumes newest items sell first, resulting in higher COGS and lower taxes. Once chosen, you must use the method consistently.
Related Calculators
Lead Time Calculator
Calculates procurement lead time from order placement to delivery for inventory planning
Average Inventory Calculator
Computes average inventory value over a period for financial reporting
Inventory Cost Calculator
Calculates total inventory holding and carrying costs including storage, insurance, and shrinkage
Finished Goods Inventory Calculator
Calculates the value of completed products in inventory