FINAL INVENTORY

While inventories are the set of goods, ending inventory is the amount, and total value, of goods
in a company's possession at the end of the year.

This volume of goods can be made up of the set of goods that have not yet been sold, or by stocks
that are in the process of being transformed, in the case of manufacturers.

Indicator: INITIAL INVENTORY

Formula: Final Inventary = Initial Inventory + Cost of Inventory Purchased – Cost of Inventory Sold

In this way, to find out the final inventory it is essential to know the value of the initial inventory of
the current year plus the variations of sales and purchases of stocks.

Periodicity: At the end of each year, or depending on the type of company.

Parameters

Color Green or Acceptable Equal to or less than 8%

Yellow Color or Caution Greater than 4% up to 6%

Red or Unacceptable Color Equal to or greater than 12%