Average Inventory Formula | How to calculate average ...
Jan 15, 2021 · Calculating Closing Inventory. For the ending inventory, the equation would be as follows: Ending Inventory = (Opening inventory + purchased inventory) – Cost of goods sold (COGS) For instance, during the past fiscal year, Jantez Ltd's beginning inventory was 6,300, and the purchased inventory was 2,200, while the COGS was 3,500.