Question

A company began its fiscal year with inventory of $203,000. Purchases and cost of goods sold for the year were $962,000 and $996,000, respectively. What was the amount of ending inventory

Answer 1

the amount of ending inventory is $169,000

Step-by-step explanation:

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

As we know that

Cost of goods sold = Opening inventory + purchase made - ending inventory

$996,000 = $203,000 + $962,000 - ending inventory

$996,000 = $1,165,000 - ending inventory

So, the ending inventory is

= $1,165,000 - $996,000

= $169,000

hence, the amount of ending inventory is $169,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered