how to find cost of ending inventory

how to find cost of ending inventory involves calculating the value of the goods remaining in stock at the end of an accounting period. This value is essential for determining a company’s financial performance and profitability. To find the cost of ending inventory, businesses often use one of three methods: FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or the weighted average cost method. The ending inventory is calculated by taking the cost of goods available for sale during the period and subtracting the cost of goods sold (COGS). The resulting figure represents the value of the unsold inventory.