Palm Industries had cost of goods sold of $40,000.If purchases were $46,000 and ending inventory was $12,000,Ace's beginning inventory must have been:

Name: Palm Industries had cost of goods sold of $40,000.If purchases were $46,000 and ending inventory was $12,000,Ace's beginning inventory must have been:
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Question

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + Purchases − Ending inventory
Beginning inventory = Cost of goods sold − Purchases + Ending inventory
= $40,000 − $46,000 + $12,000 = $6,000

Palm Industries Had Cost of Goods Sold of $40,000