Langston Company updates its inventory periodically.The company's cost of goods sold was $2,700 and purchases were $5,600 during the year.The company's ending inventory count was $5,000.What was the amount of beginning inventory?
A)$3,300
B)$13,300
C)$7,900
D)$2,100

Question

Quizplus · Accepted Answer

We can use the formula:

Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold

Plugging in the given values, we get:

Beginning Inventory + $5,600 - $5,000 = $2,700

Simplifying this equation, we get:

Beginning Inventory = $2,100

Therefore, the correct answer is choice D.

Langston Company Updates Its Inventory Periodically