Question

taylor company had beginning inventory of $400 and ending inventory of $600. taylor company had cost of goods sold amounting to $1,800. what is the amount of inventory that was purchased during the period?

Answer 1

Taylor's amount of inventory that was purchased during the period was closing inventory - opening inventory $600 - $ 400 = $200 + COGS ($1800) = $2000.

When calculating average inventory, opening inventory—the value of goods carried over from the prior accounting period—is taken into account. It aids in calculating cost of products sold. The stock's value at the end of the accounting period is known as closing inventory, often referred to as ending inventory.

The cost of inventory encompasses all charges incurred by a company to bring the stock to its present location and state, including purchases, conversions, services, and other costs.  Non-refundable taxes, shipping, trade discounts, and other direct and indirect costs associated with buying the item are all included in the purchase price. It excludes costs associated with selling and distributing.

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