Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $150,000 on December 31, 20X2. During the year 20X2, the corporation purchased additional inventory of $375,000. If cost of goods sold for 20X2 is $470,000, what was the beginning inventory at January 1, 20X2?

Question

Quizplus · Accepted Answer

The beginning inventory can be calculated using the formula: Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory. Plugging in the given values: Beginning Inventory + $375,000 - $470,000 = $150,000. Solving for Beginning Inventory gives $245,000.

Stone Pine Corporation, a Calendar Year Taxpayer, Has Ending Inventory