Question

Sandpiper Company reported the following year-end amounts: Beginning Inventory $22,950 Net Cost of Purchases 101,250 Ending Inventory ? Cost of Goods Sold 93,150

Answer 1

Answer:

Closing Inventory = $31050

Explanation:

The cost of goods sold is the cost of the inventory that the business sells during a period of time. The cost of goods sold is calculated as follows,

Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory

As we already have the values for Opening inventory, net cost of purchases and the cost of goods sold, we can input these values in the above formula to calculate the cost of closing inventory.

93150 = 22950 + 101250 - Closing Inventory

93150 = 124200 - Closing Inventory

Closing Inventory = 124200 - 93150

Closing Inventory = $31050