Question

"Endor Company begins the year with $180,000 of goods in

inventory. At year-end, the amount in inventory has increased to
$197,000. The cost of goods sold for the year is $1,300,000.
Compute endors in"

Answer 1

Endor Company made $317,000 worth of purchases during the year by applying the formula for ending inventory and using the provided figures for beginning inventory, ending inventory, and cost of goods sold.

Step-by-step explanation:

The student is asking to compute the ending inventory for Endor Company. To answer this, we will use the basic formula for inventory calculation:

Ending Inventory = Beginning Inventory + Purchases - Cost of Goods Sold

However, the question only provides the beginning inventory, ending inventory, and the cost of goods sold. With these values, we can deduce the purchases made during the year. Let's apply the provided information to the formula:

Ending Inventory = $180,000 (Beginning Inventory) + Purchases - $1,300,000 (Cost of Goods Sold)

We are given that the Ending Inventory is actually $197,000, so:

$197,000 = $180,000 + Purchases - $1,300,000

From this equation, we will solve for Purchases:

Purchases = $197,000 - $180,000 + $1,300,000

Purchases = $317,000

Therefore, Endor Company made $317,000 worth of purchases during the year.