Question

Lassiter Corp. uses the periodic inventory method. During the year, Lassiter purchases $10,000 of inventory. Ending inventory is $6,000. Cost of goods sold is $12,000. Beginning inventory was:

Answer 1

$8000

Step-by-step explanation:

Lassiter Corp. uses the periodic inventory method. During the year, Lassiter purchases $10,000 of inventory. Ending inventory is $6,000. Cost of goods sold is $12,000. Beginning inventory was $8000.

In order to solve this we must use the order of operations (PEMDAS)

$12,000 - $10,000 = $2000

$2000 + $6000 = $8000

Answer 2

Answer: $8000

Step-by-step explanation: Beginning inventory is the amount of inventory the entity has at the initiation of the year, it can be computed as follows :-

cost of goods sold = opening stock + purchase - closing stock

therefore,

opening stock = cost of goods sold - purchase + closing stock

Putting the values into equation we get :-

opening stock = $12,000 - $10,000 + $6000

= $8000