Sloan Enterprises had inventory on May 1 with a cost of $2,000. During May, the company purchased additional inventory at a cost of $8,000. Sloan uses a perpetual inventory system and recorded cost of goods sold of $7,000 for the month. What should be the cost of inventory on hand at the end of May?

Question

Quizplus · Accepted Answer

The cost of inventory on hand at the end of May is calculated as the beginning inventory ($2,000) plus purchases ($8,000) minus cost of goods sold ($7,000), which equals $3,000.

Sloan Enterprises Had Inventory on May 1 with a Cost