The formula to get the first months beginning inventory is; Beginning inventory = Cost of goods sold + Ending inventory – Purchases
<h3>How to Calculate Beginning Inventory?</h3>
Beginning inventory is defined as the quantity of a product a business has in stock at the start of an accounting period such as a month or a year.
The formula to calculate beginning inventory is given as;
Beginning inventory = Cost of goods sold + Ending inventory – Purchases
Where;
The cost of goods sold (COGS) is gotten from;
COGS = (Previous accounting period beginning inventory + previous accounting period purchases) – previous accounting period ending inventory
Ending inventory = Previous accounting period beginning inventory + Net purchases for the month – COGS
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