A retailer maintains a book (perpetual)inventory system in which all figures are kept at cost values.Beginning-of-month inventory as of December 1,2016 is $300,000; purchases in December equal $100,000; and December's sales (at cost)equal $155,000.Beginning-of-month inventory for January 1,2010 equals ________.

Question

Quizplus · Accepted Answer

To find the beginning-of-month inventory for January 1,2017, we need to subtract December's sales from the beginning-of-month inventory as of December 1,2016 and add the purchases made in December.

Beginning-of-month inventory as of December 1,2016 = $300,000
Purchases in December = $100,000
December's sales = $155,000

Therefore, beginning-of-month inventory for January 1,2017 = $300,000 - $155,000 + $100,000 = $245,000.

A Retailer Maintains a Book (Perpetual)inventory System in Which All