Delta Merchandising,Inc.has provided the following information for the year just ended: The ending inventory for the company at year end was:

Question

Delta Merchandising,Inc.has provided the following information for the year just ended:  The ending inventory for the company at year end was:

Quizplus · Accepted Answer

The company’s cost of goods sold can be calculated by subtracting the beginning inventory ($15,000) from the cost of goods available for sale ($76,100) and adding the purchases made during the year ($72,500). Therefore, the cost of goods sold was $133,600. Using the formula for calculating ending inventory, which is cost of goods available for sale minus cost of goods sold, we get $14,050 as the ending inventory value.