Honigkuchen Company reported the following data for 2019:
Determine Honigkuchen Company's Balance of Ending Inventory.

Question

Honigkuchen Company reported the following data for 2019:
 Determine Honigkuchen Company's Balance of Ending Inventory.

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + (Purchases - Purchase discounts + Freight-in - Purchase returns) - Ending inventory
$1,320,000 = $100,000 + ($2,200,000 - $40,000 + $60,000 - $100,000) - X
X = $100,000 + ($2,200,000 - $40,000 + $60,000 - $100,000) - $1,320,000
X = $900,000 = Ending inventory

Honigkuchen Company Reported the Following Data for 2019