Enter the beginning inventory purchases ($) and the ending inventory value ($) into the Inventory Cost Calculator. The calculator will evaluate and display the Inventory Cost.
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- Ending Inventory Calculator
Inventory Cost Formula
The following formula is used to calculate the Inventory Cost.
IC = BIP – EIV
- Where IC is the Inventory Cost ($)
- BIP is the beginning inventory purchases ($)
- EIV is the ending inventory value ($)
How to Calculate Inventory Cost?
The following example problems outline how to calculate Inventory Cost.
Example Problem #1:
- First, determine the beginning inventory purchases ($). The beginning inventory purchases ($) is given as 500.
- Next, determine the ending inventory value ($). The ending inventory value ($) is provided as 300.
- Finally, calculate the Inventory Cost using the equation above:
IC = BIP – EIV
The values given above are inserted into the equation below:
IC = 500 – 300 = 200 ($)
Example Problem #2:
The variables needed for this problem are provided below:
beginning inventory purchases ($) = 7000
ending inventory value ($) = 2000
Entering these values and solving gives:
IC = BIP – EIV = 5000.00 ($)
