Question

EB6.

LO 4.3Langston’s purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?

Answer 1

$1,150

Step-by-step explanation:

The computation of the beginning inventory is shown below:

As we know that

Cost of goods sold = Beginning inventory + purchase of merchandise during the month - ending inventory

$3,000 = Beginning inventory + $3,100 - $1,250

$3,000 = Beginning inventory + $1,850

So, the beginning inventory would be

= $3,000 - $1,850

= $1,150