If ABC's income statement showed cost of goods sold at $78,000,purchases of $80,000,freight-in at $300,purchases returns of $500 and end-of-the period inventory at $11,900,its beginning-of-the-period-inventory must have been:

Question

Quizplus · Accepted Answer

Beginning Inventory + Purchases + Freight-in - Purchases Returns = Cost of Goods Available for Sale
Let's use the formula to find out the beginning inventory:
Beginning Inventory + $80,000 + $300 - $500 = $78,000 + $11,900
Beginning Inventory + $79,800 = $89,900
Beginning Inventory = $89,900 - $79,800
Beginning Inventory = $10,100
Therefore, the beginning-of-the-period inventory was $10,100.

If ABC's Income Statement Showed Cost of Goods Sold at $78,000,purchases