Peskari Company's cost of goods sold and ending inventory were $100,000 and $150,000 respectively.Assuming Peskari had neither purchases nor returns, what was the cost of its beginning inventory?

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as Beginning Inventory + Purchases - Ending Inventory. Given no purchases or returns, the equation simplifies to Beginning Inventory - Ending Inventory = COGS. Therefore, Beginning Inventory = COGS + Ending Inventory = $100,000 + $150,000 = $250,000.

Peskari Company's Cost of Goods Sold and Ending Inventory Were