Question

Beginning inventory is $30,000. Purchases of inventory during the year are $60,000. Cost of goods sold is $70,000. What is en
0 0
Add a comment Improve this question Transcribed image text
Answer #1
Solution:
Answer is b. or c. 20,000
Notes: Ending inventory is $20,000 , but there is two option given having same value of $20,000. generally this error of question so you can choose any of two option it would be correct .
Working Notes:
Notes: To get Ending Finished goods inventory which will be reported in balance sheet, by using formula of cost of goods sold as below:
For trading company Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory
But for Manufacturing company Cost of goods sold = Beginning finished goods Inventory + cost of goods manufactured - Ending finished goods Inventory
Now Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory
Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold
Ending Inventory = 30,000 + 60,000 - 70,000
Ending Inventory =$20,000
Please feel free to ask if anything about above solution in comment section of the question.
Add a comment
Know the answer?
Add Answer to:
Beginning inventory is $30,000. Purchases of inventory during the year are $60,000. Cost of goods sold...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A company has a beginning inventory of $60,000 and purchases during the year of 590.000. The...

    A company has a beginning inventory of $60,000 and purchases during the year of 590.000. The beginning inventory consisted of 1,000 units and 9,000 units were purchased during the year. The company has 5.000 units left at year-end. Under average-cost, what is Cost of Goods Sold? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar) O A. $75,000 O B. $90,000 O C. $135,000 OD. $150,000

  • A company has a beginning inventory of $30,000 and purchases during the year of $110,000. The...

    A company has a beginning inventory of $30,000 and purchases during the year of $110,000. The beginning inventory consisted of 2,000 units and 7,000 units were purchased during the year. The company has 5,000 units left at year−end. Under average−​cost, what is Cost of Goods​ Sold? (Round any intermediary calculations to two decimal places and your final answer to the nearest​ dollar.)

  • Cost of goods sold is an asset reported in the balance sheet and inventory is an...

    Cost of goods sold is an asset reported in the balance sheet and inventory is an expense reported in 运行时 the income statement. 17 O True O False 问题2 1分 If a company has beginning inventory of $15,000, purchases during the year of $75,000, and ending inventory of $20,000, cost of goods sold equals $70,000 True False 问题3 1分 For most companies, actual physical flow of their inventory follows LIFO.I True O False

  • Sandpiper Company reported the following year-end amounts: Beginning Inventory $22,950 Net Cost of Purchases 101,200 Ending...

    Sandpiper Company reported the following year-end amounts: Beginning Inventory $22,950 Net Cost of Purchases 101,200 Ending Inventory ? Cost of Goods Sold 93,150 What is Sandpiper Company's Ending Inventory for the year? Select one: A. $22,950 B. $14,850 C. $31,050 D. $ 8,100 2) Using a perpetual inventory system, the buyer’s journal entry to record the purchase of merchandise on credit includes a: Select one: A. Debit to Purchases B. Debit to Inventory C. Debit to Freight In D. Debit...

  • Hamza Corporation reported the following results for the current year: Revenue Beginning inventory, Direct Materials Ending...

    Hamza Corporation reported the following results for the current year: Revenue Beginning inventory, Direct Materials Ending inventory, Direct Materials Purchases - Direct Materials Direct Labor Manufacturing Equipment Depreciation Plant Utilities Indirect Plant Labor Marketing Customer Service Beginning Work-in Process Ending Work-in-Process Beginning Finished Goods Ending Finished Goods $800,000 35,000 20,000 175.000 225,000 90,000 50,000 60,000 30,000 40,000 80,000 85,000 90,000 75,000 Based on the data above, Cost of Goods Sold equals:

  • Finished Goods $ 1,350 $2,800 Beginning inventory Ending inventory Purchases of materials Cost of Goods Sold...

    Finished Goods $ 1,350 $2,800 Beginning inventory Ending inventory Purchases of materials Cost of Goods Sold Manufacturing overhead Work-in-Process $ 1,250 $ 2,600 $ 11,500 $19,400 $ 6,150 What was the direct labor for the period? O $6,500. O $7,750. O $8,200. $9,650. ©2020 McGraw-Hill Educa bllowing information: Finished Goods $ 1,350 $2,800 Materials $ 1,450 $3,400 Work-In-Process $ 1,250 $ 2,600 $ 11,500 $19,400 $ 6,150 e period?

  • Question 13 5 pts Beginning inventory plus net purchases is: Sales. Purchases. Cost of goods sold....

    Question 13 5 pts Beginning inventory plus net purchases is: Sales. Purchases. Cost of goods sold. Merchandise available for sale. Ending inventory Question 14 5 pts A company had sales of $350,000, and cost of goods sold of $200,000. Its gross pront equals $550,000. O True 0 False

  • A company has a beginning inventory of $20,000 and purchases during the year of $130,000. The...

    A company has a beginning inventory of $20,000 and purchases during the year of $130,000. The beginning inventory consisted of 1,000 units and 6,000 units were purchased during the year. The company has 3,000 units left at year−end. Under average−​cost, what is Cost of Goods​ Sold? (Round any intermediary calculations to two decimal places and your final answer to the nearest​ dollar.)

  • Use the following data to calculate the cost of goods sold for the period: Beginning Raw...

    Use the following data to calculate the cost of goods sold for the period: Beginning Raw Materials Inventory Ending Raw Materials Inventory Beginning Work in Process Inventory Ending Work in Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Manufactured for the period $ 30,000 70,000 40,000 46,000 72,000 68,000 246,000 Multiple Choice $250,000 $290,000. $242,000. $258,000. O $246.000.

  • In a periodic inventory system, the cost of goods sold is determined as follows Select one:...

    In a periodic inventory system, the cost of goods sold is determined as follows Select one: O a A physical count is made of all tems sold throughout the year, and a cost flow assumption is applied at year-end O b. Year-end inventory, plus purchases during the O c. Net sales, less the balance in the Gross Profit account year, less the inventory at the beginning of the year

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT