Berkley Company had beginning inventory of $4,000 and purchases of $20,000.If half of its inventory was sold,Berkley's goods available for sale will:
A)be split between cost of goods sold and ending inventory.
B)appear only as an expense on the income statement.
C)appear only as an expense on the balance sheet.
D)appear only as an asset on the income statement.

Question

Quizplus · Accepted Answer

The sum of beginning inventory and purchases represents the cost of goods available for sale.If half of the inventory was sold,it would be reported as Cost of Goods Sold,an expense on the income statement.The other half still on hand would be reported as Inventory,an asset,on the balance sheet.

Berkley Company Had Beginning Inventory of $4,000 and Purchases of $20,000.If