How To Calculate Purchases Without Ending Inventory / Stock
I n that case we are given the Cost of Goods Available for Sale , then we can find out the value of inventory purchases without ending inventory. We know that: Ope ning Inventory + Purchases = Cost of Goods Available for Sale For Example, if we have opening inventory Rs. 5000, Cost of Goods Available for Sale = Rs. 2000, then what is Purchases ? Putting the value in the above formula, we get: 5000 + Purchases = 20000 Purchases = 20000 - 5000 = Rs. 15000 So , we can easily calculate purchases inventory without ending inventory from the above formula.