Fondant Company reported the following data for 2019:
Determine Fondant Company's Balance of Ending Inventory.

Question

Fondant Company reported the following data for 2019:
 Determine Fondant Company's Balance of Ending Inventory.

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + (Purchases - Purchase discounts + Freight-in - Purchase returns) - Ending inventory
$990,000 = $75,000 + ($1,650,000 - $30,000 + $45,000 - $75,000) - X
X = $75,000 + ($1,650,000 - $30,000 + $45,000 - $75,000) - $990,000
X = $675,000 = Ending inventory

Fondant Company Reported the Following Data for 2019