Question

A company began its fiscal year with inventory of $205,000. Purchases and cost of goods sold for the year were $964,000 and $998,000, respectively. What was the amount of ending inventory?

Answer 1

Answer:

171,000 dollars is the answer.

Explanation:

1. ($998,000 - $964,000 = $34,000)

2. $205,000 - $34,000 = $171,000

Answer 2

The amount of ending inventory of the company is $\bold{\ 171,000}$

Explanation:

If we sell any product, we will have remaining some products at the end of the accounting period. These products have a particular value, which is called the ending inventory.

Given, Initial inventory in the beginning of the fiscal year = $\bold{\ 205,000}$

Purchase made for the year = $\bold{\ 964,000}$

Cost of goods sold for the year (sales) = $\bold{\ 998,000}$

To find, the amount of ending inventory we have to use the following formula,

$\bold{\text { Inventory }+\text { Net Purchases - cost of Goods Sold (or } \ COGS)=\text { Ending Inventory }}$

$\bold{\Rightarrow \ 205,000 - \ 998,000 + \ 964,000 = \ 171,000}$