Beginning inventory was $4,000,purchases totaled $22,000 and sales were $20,000.What is the ending inventory?

Question

Quizplus · Accepted Answer

To find the ending inventory, we need to subtract the cost of goods sold from the beginning inventory plus purchases.

Beginning inventory + Purchases - Cost of Goods Sold = Ending Inventory

We are given that beginning inventory was $4,000, purchases were $22,000, and sales were $20,000. To find the cost of goods sold, we can subtract the sales from the beginning inventory plus purchases:

$4,000 + $22,000 - $20,000 = $6,000

So the ending inventory is:

$4,000 + $22,000 - $6,000 = $20,000

Therefore, the answer is C) $6,000.

Beginning Inventory Was $4,000,purchases Totaled $22,000 and Sales Were $20,000