Question

Saguaro Company updates its inventory perpetually. Its beginning inventory is $70,000, goods purchased during the period cost $240,000, and the cost of goods sold for the period is $280,000. What is the amount of the ending inventory

Answer 1

Answer:

Ending inventory= 30,000

Explanation:

Giving the following information:

Its beginning inventory is $70,000, goods purchased during the period cost $240,000, and the cost of goods sold for the period is $280,000.

The ending inventory is the cost of the units remaining at the end of the period.

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

280,000= 70,000 + 240,000 - ending inventory

ending inventory= 70,000 + 240,000 - 280,000

Ending inventory= 30,000