Estimated ending inventory at cost is:
A)$90,720.
B)$83,920.
C)$91,600.
D)None of these is correct.

Question

Quizplus · Accepted Answer

The ending inventory at cost can be found by subtracting the cost of goods sold (COGS) from the cost of goods available for sale (COGAS).

COGAS = beginning inventory + purchases
COGAS = $52,000 + $69,640 
COGAS = $121,640

COGS = COGAS - ending inventory
$105,720 = $121,640 - ending inventory 
Ending inventory = $121,640 - $105,720 
Ending inventory = $15,920

Therefore, the estimated ending inventory at cost is $15,920, which corresponds to answer choice B.

Estimated Ending Inventory at Cost Is