How do you calculate ending inventory?

Beginning Direct Materials Add: Materials purchased during periodLess: Materials Used during periodEquals: Ending Direct Materials

Determined the RRT (Reliable Replenishment Time) which was basically, production cycle time + transit + order entry + some kind of pad (if it was shipping rail we'd put in a 7_10 day pad) by truck...

This is a very simple calculation. Days to Sell Inventory (or Days in Inventory) = Average Inventory / Annual Cost of Goods Sold /365 Average Inventory = (Beginning Inventory + Ending Inventory) /...

Inventory turnover = cogs / avg inventory

An overstatment of year-end inventory results in an increase in the gross margin (sales - cost of sales). overstating ending inventroy understates cost of sales