The value of ending inventory should be equal to beginning inventory plus total production costs minus cost of goods sold, all from the same time frame.

Question

Quizplus · Accepted Answer

This formula accurately reflects how to calculate the ending inventory value, as it accounts for the initial inventory, adds the costs of producing additional goods, and subtracts the cost of goods that were sold, all within the same accounting period.

The Value of Ending Inventory Should Be Equal to Beginning