ending inventory

(redirected from Ending Inventories)

Ending Inventory

Goods and materials available for sale at the end of an accounting period or fiscal year. Comparing the ending inventory to the beginning inventory may help a company determine whether it overestimated the materials it needs to operate, or customers' demand for their products.

ending inventory

Goods available for sale at the end of an accounting period. Compare beginning inventory.
References in periodicals archive ?
If using a cutoff basis, the change applies only to the computation of ending inventories after the beginning of the year of change.
In order to calculate Required Production, we need to first calculate Beginning and Ending Inventories for each quarter.
Since these products are variable, it is expected that the companies will use the weighted average method of costing their ending inventories.
They further maintain that FIFO provides the most accurate estimate of the costs of ending inventories
It's our mission to make LIFO safe, easy and cost effective for wholesalers, distributors, and manufacturers of all sizes - our clients have year ending inventories ranging from as low as a few thousand dollars to billions of dollars.
The preamble indicates that the intention of the proposed regulations is that neither sales-based royalties nor sales-based vendor allowances should adjust the value of ending inventories.
After a lengthy analysis of the history and application of the retail method, the IRS ruled that the method will correctly compute inventories at retail lower-of-cost-or-market (LCM), only if the merchant uses contemporaneous retail prices when computing the cost complement and ending inventories (at retail).
The merchant must also be able to show that it used the data properly when computing the cost complement, ending inventories (at retail) and retail LCM (or retail cost).
In the past year, the Tax Court has rendered three opinions on the use of shrinkage estimation when accounting for ending inventories using the perpetual method (Wal-Mart Stores, Inc.
This method of accounting assumes that the goods most recently purchased or produced are the first goods sold and, accordingly, that their associated costs are the first costs treated as costs of sale, Thus, inventory basis is built up in layers over time as ending inventories periodically increase over beginning inventories.
On discovery, the taxpayer corrected its mistake by adjusting both the beginning and ending inventories.