Answer:
The correct answer is $19,000
Explanation:
In order to compute the ending inventory, first need to compute the COGS (Cost of goods Sold) formula, which as:
COGS (Cost of Goods Sold) = Net Sales - Gross Profit
where
Net Sales is $50,000
Gross Profit is $15,000
Putting the values above:
COGS = $50,000 - $15,000
COGS = $35,000
Now, computing the ending inventory as:
Ending Inventory = Beginning or Starting Inventory + Cost of goods purchases or Purchases - COGS
Ending Inventory = $12,000 + $42,000 - $35,000
Ending Inventory = $54,000 - $35,000
Ending Inventory = $19,000
