Question

Bayside began 2014 with an inventory T-account debit balance of $155,000. Inventory purchases during the year amounted to $75,000. There were no inventory-related write-downs or losses. What is its December 31, 2014, inventory account balance?

Answer 1

Ending Inventory at december 31th, 2014 = 230,000

Step-by-step explanation:

We are going to use the inventory identity to solve for ending inventory

`$$Beginning Inventory + Purchase = Ending Inventory + COGS`

There is no information for COGS and we also have the statemtn that thre was no write-downs or losses, so COGS = 0

155,000 + 75,000 = Ending Inventory + 0

155,000+ 75,000 = 230,000

Ending Inventory = 230,000