How do you calculate opening and closing stock?

How do you calculate opening and closing stock?

The formula for Calculating Opening Stock

1. Opening Stock = Raw Material Cost + Work in Progress Values + Finished Goods Cost.
2. Opening Stock = Sales – Gross Profit – Cost of Goods Sold + Closing Stock.
3. Opening Stock = Sales – Purchases – Gross Margin + Closing Stock.

What is the formula for opening inventory?

Opening Inventory Formula This beginning inventory equation, or opening stock formula, is: Opening Inventory = Cost of Goods Sold + Ending Inventory – Purchases. This formula can be used to calculate any of the four values, given the other three are available.

What is closing and opening inventory?

Opening inventory is the value of inventory that is carried forward from the previous accounting period and is used to compute the average inventory. It also helps to determine cost of goods sold. Closing inventory (also known as ending inventory) is the value of the stock at the end of the accounting period.

What is closing stock formula?

The formula for calculating closing stock is as follows: Closing stock = (Opening Stock + Inward) – Outward. or. Closing Stock = Opening Stock + Purchases – Cost of Goods Sold.

How do you calculate closing stock example?

Closing Stock Formula (Ending) = Opening Stock + Purchases – Cost of Goods Sold.