The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning finished goods inventory?

Question

The following is selected financial data from Turtle Bay Manufacturing for the most recent year.  What is the beginning finished goods inventory?

Quizplus · Accepted Answer

The beginning finished goods inventory can be found by subtracting the cost of goods sold from the sum of beginning finished goods inventory and ending finished goods inventory. Since the cost of goods sold is given as $279,600 and the ending finished goods inventory is given as $139,400, we can rearrange the equation as beginning finished goods inventory = cost of goods sold - ending finished goods inventory. Plugging in the values, we get beginning finished goods inventory = $279,600 - $139,400 = $140,200. However, we need to round this to the nearest hundred, which gives us a final answer of $19,200 (choice B).

The Following Is Selected Financial Data from Turtle Bay Manufacturing