Ending Inventory

Ending inventory is the inventory still on hand at the end of a reporting period after the business has recognized the cost of goods sold for the units no longer available.

It is the period-end inventory balance carried on the balance sheet and carried forward into the next period.

Why It Matters

Ending inventory directly affects:

• cost of goods sold
• gross profit
• current assets
• the next period’s opening inventory balance

Because of that, ending inventory depends on both inventory valuation and count-and-reconciliation work such as stocktaking.