Oaks Company purchases $240,000 of inventory during the period and sells $72,000 of it for $120,000. Beginning of the period inventory was $12,000.
What is the company's inventory balance to be reported on its balance sheet at year end?

Question

Quizplus · Accepted Answer

Ending Inventory = Beginning Inventory + Purchases - Cost of Goods Sold
X = $12,000 + $240,000 - $72,000
X = $180,000

Oaks Company Purchases $240,000 of Inventory During the Period and Sells