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    keith6292's Avatar
    keith6292 Posts: 29, Reputation: 1
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    #1

    Aug 22, 2011, 06:10 PM
    Calculate merchandise inventory
    Can someone please take a look at my example and help explain how to calculate the balance of "Merchandise Inventory"?

    Thanks



    Keith

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  1. File Type: zip Example.zip (14.8 KB, 429 views)
    2. CliffARobinson's Avatar
    CliffARobinson Posts: 1,416, Reputation: 101
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    #2

    Aug 22, 2011, 07:02 PM
    Are you talking about COG (cost of goods) sold?

    If so, I believe you are looking for this formula:

    Beginning Inventory + Purchases - Ending Inventory

    Let me know if this helps.
    keith6292's Avatar
    keith6292 Posts: 29, Reputation: 1
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    #3

    Aug 22, 2011, 08:07 PM
    Did you happen to look at the attachment file? On the very bottom it says "Calculate the balance in the Merchandise Inventory account as at July 31, 2012.". Is that the same as COG?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    Aug 25, 2011, 12:37 PM
    COGS stands for Cost of Goods of Sold and it is the Merchandise Inventory that was sold, so it is not part of the remaining Merchandise Inventory balance.
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