Georgia Company's beginning and ending inventory amounts were $150,000 and $140,000, respectively. Cost of goods sold was $670,000. Georgia Company purchased of inventory.
A) $660,000
B) $680,000
C) $670,000
D) an indeterminable amount

Question

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + Purchases - Ending inventory$670,000 = $150,000 + Purchases - $140,000Purchases = $670,000 + $140,000 - $150,000Purchases = $660,000

Georgia Company's Beginning and Ending Inventory Amounts Were $150,000 and $140,000