Question

An operation's Beginning Inventory for an accounting period equaled $15,000. Ending Inventory for the period equaled $14,000, Purchases equaled $21,500 and Total Cost of Sales was $21,000. What was the amount of this operation's Employee Meals in the period?

Answer 1

Answer:

$1,500

Explanation:

Data provided:

operation's Beginning Inventory = $15,000

Purchases = $21,500

Ending Inventory for the period = $14,000

Total Cost of Sales = $21,000

Now,

The amount of this operation's Employee Meals in the period

= Beginning Inventory + Purchases - Ending Inventory - Total Cost of Sales

= $15,000 + $21,500 - $14,000 - $21,000

= $1,500