learning: inventory and cost of goods sold\nestimated time to complete\n8 min\naccuracy\n67%\nprogress\n17…

learning: inventory and cost of goods sold\nestimated time to complete\n8 min\naccuracy\n67%\nprogress\n17 mastered 3 incorrect\n0 in progress 0 not seen\n20 total questions\nquestion\nlo 5 buddys backyard supplies reported the following information related to inventory.\nsales revenue $915,000\nbeginning inventory 210,000\ncost of goods sold 815,000\npurchases of inventory 905,000\nusing the above information, what is ending inventory?\nanswer\n$300,000\n$1,115,000\n$605,000\n$100,000\ni dont know yet
Answer
Explanation:
Step1: Recall inventory formula
Ending inventory = Beginning inventory + Purchases - Cost of Goods Sold
Step2: Substitute given values
Beginning inventory = $210,000$, Purchases = $905,000$, Cost of Goods Sold = $815,000$ Ending inventory = $210000 + 905000-815000$
Step3: Calculate
$210000 + 905000-815000=300000$
Answer:
$300,000$