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The window company had an ending inventory equal to one-third (0.33) its beginning inventory. The receipts were two-thirds (0.67) of the beginning inventory. If the cost of goods sold is $7,358, find the beginning inventory.

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Step-by-step explanation:

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Felicia Owanga

.yes or no

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Felicia Owanga

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Felicia Owanga

Give me reasons why to become a president

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Felicia Owanga

The window company had an ending inventory equal to one-third (0.33) its beginning inventory. The receipts were two-thirds (0.67) of the beginning inventory. If the cost of goods sold is $7,358, find the beginning inventory.

Let's use algebra to solve the problem.

Let's say that the beginning inventory is "B".

According to the problem, the ending inventory is 0.33B and the receipts are 0.67B.

We can use the following formula to calculate the cost of goods sold (COGS):

COGS = Beginning Inventory + Purchases - Ending Inventory

We know that COGS is $7,358, and we can substitute the values we know into the formula:

$7,358 = B + 0.67B - 0.33B

Simplifying the right-hand side of the equation:

$7,358 = 1.34B - 0.33B

$7,358 = 1.01B

Dividing both sides by 1.01:

B = $7,290.10

Therefore, the beginning of the inventory was $7,290.10 B I hope this helps

User PatrickChen
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7.8k points
5 votes

Final answer:

The beginning inventory for the window company was $7,358. This is calculated using the inventory accounting identity, considering that the ending inventory is one-third of the beginning inventory and the receipts are two-thirds of it, with the cost of goods sold provided as $7,358.

Step-by-step explanation:

The cost of goods sold (COGS) is given as $7,358, and it is known that the ending inventory is one-third of the beginning inventory. Additionally, the receipts are two-thirds of the beginning inventory. To find the beginning inventory, we use the following equation based on the inventory accounting identity:

Beginning Inventory + Receipts - COGS = Ending Inventory

Let Beginning Inventory be represented by the variable B.

Ending Inventory is one-third of the Beginning Inventory or (1/3)B.

Receipts are two-thirds of the Beginning Inventory or (2/3)B.

Plugging these values into the equation yields:
B + (2/3)B - $7,358 = (1/3)B

Combining like terms gives us:
B + (2/3)B - (1/3)B = $7,358
(3/3)B + (2/3)B - (1/3)B = $7,358
B = $7,358

Therefore, the beginning inventory for the window company was $7,358.

User Kanagalingam
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7.8k points