Question

A company began its fiscal year with inventory of $191,000. Purchases and cost of goods sold for the year were $950,000 and $984,000, respectively. What was the amount of ending inventory

Answer 1

Ending inventory= $157,000

Step-by-step explanation:

Giving the following information:

Beginning inventory= $191,000.

Purchases and cost of goods sold for the year were $950,000 and $984,000.

To calculate the ending inventory, we need to use the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

984,000= 191,000 + 950,000 - ending inventory

984,000= 1,141,000 - ending inventory

Ending inventory= $157,000