Wonderful Moments at 133rd Canton Fair
KeyWord: Canton fair, Frey auto parts
Are you looking to enhance your annual parts inventory and improve the financial health of your automotive parts department? Then understanding ending inventory is key!

Ending inventory is the value of the automotive parts you have available for sale at the end of a given accounting period. It is calculated by adding beginning inventory and purchases, then subtracting cost of goods sold (COGS).
IT is calculated by the equation:

It is especially important for this number to be accurate when you are trying to obtain financing or are selling your business. That being said, maintaining accurate inventory numbers throughout the year is critical to the proper management of automotive inventory.


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There are many valuation methods that can be used to determine the dollar value of ending inventory. The inventory valuation method you choose to use for your parts department will impact financial statements so it is important to consider your department's goals. You also need to consider GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards) restrictions.

Frey Team met a lot of old and new friends

For most businesses, the flow of materials is first in first out, meaning that the oldest items are taken off the shelf first allowing newer, fresher stock to be left on the shelves. In some industries, such as those selling food and beverage products, this flow is made necessary through expiry dates.


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