Question

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $212,000. What is the value of the ending inventory?

1) $212,000
2) Cannot be determined
3) Not enough information provided
4) Other

Answer 1

The ending inventory value reported by Plunkett Company is $212,000, which is an important figure used in the calculation of the Cost of Goods Sold for financial reporting.

Step-by-step explanation:

The value of the ending inventory reported by Plunkett Company on December 31 of the current year is $212,000. This figure is reported by the company and, unless additional information is provided that suggests a need to recalculate, this number represents the value of the goods that the company has on hand at the end of the year. In accounting, the ending inventory is an important component in calculating the Cost of Goods Sold (COGS) during a financial period. As such, it plays a vital role in determining the company's gross profit.