The Beginning Inventory Calculator allows you to calculate the value of all inventory held at the start of the accounting period, this represents thevalue of stock/goods that can be used to generate revenue via sales for the period used.
Please provide a rating, it takes seconds and helps us to keep this resource free for all to use
Calculating the Beginning Inventory allows you to identify / confirm inventory change for defined accounting periods to understand shifts in stock inventory on specific lines which in turn:
Monitoring inventory is vital for effectively managing accounts of your business. It plays a major role in maintaining profitability of your business. Inventory in general is an important asset on your balance sheet as it provides the basis for your business's operation and goals.
Beginning inventory can be defined as a cash value of a company's inventory at the beginning of a new accounting period; also, the carried forward value from the end of the preceding accounting period.
Beginning inventory is an asset account, classified as a current asset. Even though technically, the beginning inventory does not appear on the balance sheet, it exists in the form of ending inventory that appears at the beginning of a balance sheet.
Beginning inventory is a combination of both goods that are used in production and goods that are ready for sale. It is an asset that can be potentially used as collateral for borrowings as it can be taken over by the bank in case of non-repayment or a default.
Managing inventory by cost and units is important for operations efficiency. It is done by managing inventory operations and units of inventory, maintaining cost records, monitoring the movement of inventory, and preventing inventory frauds.
Companies seek the highest possible price and the lowest cost of goods sold to gain the greatest profits possible. The beginning inventory works a key component for COGS. It is identified using the following formula:
Using the Beginning Inventory calculator can be quite useful for you to do proper record keeping. Calculating the beginning inventory will make you aware about the importance of proper record keeping for better financial management. The beginning inventory will also show you the value of products that are readily available for sale. This will help you make decisions about the future production needs, thus enabling you to plan ahead for greater profits. And, lastly, you can use the results obtained from the calculator to assess the financial health of a company with other metrics, such as inventory days, average inventory and inventory turnover.
The calculator designed by iCalculator performs calculations for you with just a few clicks, it is online and very easy to use. It works on the basis of the following formula:
You have to enter the following details into the calculator to start using it.
On the basis of the above mentioned inputs you will get the value of your beginning inventory in less than a second. Try it yourself and see how effortless it is to calculate beginning inventory using this simple online tool.
You may also find the following Finance calculators useful.