Lenco Industries has cost of goods manufactured of $65 000 in May. The finished goods inventory at the end of May was $20 000 and the cost of goods sold during May was $75 000.
The inventory in finished goods at the beginning of May was:
A) $5000.
B) $30 000.
C) $10 000.
D) $20 000.

Question

Quizplus · Accepted Answer

The beginning inventory in finished goods can be calculated using the formula: Beginning Inventory + Cost of Goods Manufactured - Cost of Goods Sold = Ending Inventory. Plugging in the given values: Beginning Inventory + $65,000 - $75,000 = $20,000. Solving for Beginning Inventory gives $30,000.

Lenco Industries Has Cost of Goods Manufactured of $65 000