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Beginning Inventory

   Also found in: Dictionary/thesaurus, Medical, Encyclopedia, Wikipedia 0.03 sec.
Beginning Inventory
Goods and materials available for sale at the beginning of an accounting period or fiscal year. Comparing the beginning inventory to the ending inventory may help a company determine whether it overestimated the materials it needs to operate, or customers' demand for its products. They may use these figures to estimate future sales and therefore future inventory. See also: Inventory turnover.

beginning inventory
Goods available for sale at the beginning of an accounting period. Compare ending inventory.


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As an example, I found that many students were forgetting to include the beginning inventory when computing the weighted average cost of inventory.
A change from LIFO will normally have a significant positive income effect because the accumulation of prior years' costs in beginning inventory will replace cost of goods sold valued at current costs.
481(a) adjustment will be substantial, because the beginning inventory amount under LIFO includes purchases from many years earlier.
 
 
 
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