Question

A company began its fiscal year with inventory of $186,000. Purchases and cost of goods sold for the year were $945,000 and $982,000, respectively. What was the amount of ending inventory?

Answer 1

$149,000

Step-by-step explanation:

Data provided as per the question below

Cost of goods sold = $982,000

Inventory = $186,000

Purchase = $945,000

The computation of amount of ending inventory is shown below:-

Cost of goods sold = Inventory + Purchase - Ending inventory

= $982,000 = $186,000 + $945,000 - Ending inventory

= $982,000 = $1,131,000 - Ending inventory

= $149,000