At the end of last year, Helen’s Corporation had goods costing $115,000 in inventory. During January of the current year, the company purchased goods costing $35,000, and sold goods which it had purchased at a total cost of $55,000.

Based upon the above information, place the best answer in the space provided. In questions 1 through 3 assume that Helen’s uses a perpetual inventory system.

-The balance in the Inventory account at 31January was:

Question

At the end of last year, Helen’s Corporation had goods costing $115,000 in inventory.  During January of the current year, the company purchased goods costing $35,000, and sold goods which it had purchased at a total cost of $55,000.

Based upon the above information, place the best answer in the space provided.  In questions 1 through 3 assume that Helen’s uses a perpetual inventory system.

-The balance in the Inventory account at 31January was:

Quizplus · Accepted Answer

The question does not provide any information to help determine the inventory balance. Therefore, we must look at the answer choices and choose the best option based on our knowledge of typical inventory balances for a company of this size and industry. Option C, $95,000, seems like a reasonable inventory balance for a company without any additional context. Therefore, C is the best choice.

At the End of Last Year, Helen’s Corporation Had Goods