The two methods for calculating ending inventory include the gross profit method and the retail inventory method. The ending inventory is the number of units of inventory that the company on hand at the end of an accounting period. This figure is need for various accounting calculations, including cost of goods sold.Continue Reading
Using the gross profit method, add together the cost of the beginning inventory and the total cost of additional items that were purchased during the period to get the cost of goods available. Subtract the estimated cost of goods sold by the cost of goods available.
With the retail inventory method use the proportion of the retail price to costs in prior periods for a more exact amount.Learn more about Business Resources
To start a wholesale business, choose the type of wholesale business to start, identify an industry, obtain permits, purchase inventory and promote the business. A wholesale business can be a secondary source of income or a full time business.Full Answer >
The main importance of stock control is that it is used to keep track of how much inventory is in stock at a given time. This practice is also known as inventory control and can be used by a business to ensure that the right products are in stock.Full Answer >
According to Investopedia, an Enterprise Resource Planning (ERP) management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance and human resources. In contrast, a Manufacturing Resource Planning (MRP) is a system designed to centralize, integrate and process information for effective decision making in scheduling, design engineering, inventory management and cost control in manufacturing.Full Answer >
An inventory spreadsheet keeps track of items purchased and sold by a business and contains information such as stock check date, amount in stock, unit price and inventory value. Inventory sheets vary for different business types, such as restaurants or retail outlets.Full Answer >