Jackson Manufacturing Company had a beginning inventory of $30,000.During the year,the company recorded inventory purchases of $90,000 and cost of goods sold of $100,000.The ending inventory must equal:

Question

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + Purchases − Ending inventory
Ending inventory = Beginning inventory + Purchases − Cost of goods sold
= $30,000 + $90,000 − $100,000 = $20,000

Jackson Manufacturing Company Had a Beginning Inventory of $30,000