Wesley Foundation had $25,000 in supplies inventory at the beginning of the year.The company purchased $65,000 in supplies throughout the year and used $72,000.What is the ending balance in the supplies inventory?

Question

Quizplus · Accepted Answer

Using the formula:
Ending Inventory = Beginning Inventory + Purchases - Cost of Goods Sold
We get:
Ending Inventory = $25,000 + $65,000 - $72,000
Ending Inventory = $18,000
Therefore, the ending balance in the supplies inventory is $18,000. Option D is the correct answer.

Wesley Foundation Had $25,000 in Supplies Inventory at the Beginning