Cost of Ending Inventory is the total cost associated with any unsold items at the end of a specified accounting period. It includes not only the purchase price of the items, but also the costs associated with storing and maintaining them, such as warehousing and depreciation. Cost of Ending Inventory is an important indicator of a company’s profitability, as it represents all expenses incurred in order to sell inventory during a given period. Keeping an accurate record of your Cost of Ending Inventory will help you make better-informed decisions about how to manage future production and sales cycles.