Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information: $$\begin{array} {| l | r | }
\hline \text { Sales Revenue } & \$ 45,500 \
\hline \text { Beginning Finished Goods Inventory } & 1,500 \
\hline \text { Cost of Goods Sold } & 32,500 \
\hline \text { Cost of Goods Manufactured } & 35,000 \
\hline
\end{array}$$ Calculate the amount of ending finished goods inventory reported in Damsel's balance sheet.

Question

Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information: $$\begin{array} {| l | r | } 
\hline \text { Sales Revenue } & \$ 45,500 \
\hline \text { Beginning Finished Goods Inventory } & 1,500 \
\hline \text { Cost of Goods Sold } & 32,500 \
\hline \text { Cost of Goods Manufactured } & 35,000 \
\hline
\end{array}$$ Calculate the amount of ending finished goods inventory reported in Damsel's balance sheet.

Quizplus · Accepted Answer

Using the formula, Ending Finished Goods Inventory = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Cost of Goods Sold, we get:
Ending Finished Goods Inventory = 1,500 + 35,000 - 32,500
Ending Finished Goods Inventory = $4,000
Therefore, the correct answer is choice C.

Damsel Inc Calculate the Amount of Ending Finished Goods Inventory Reported in Has