Question

Tommy Toys has beginning inventory for the year of $18,000. During the year, Tommy purchases inventory for $230,000 and has cost of goods sold equal to $233,000. Tommy’s ending inventory equals:

Answer 1

Answer:

$15,000

Explanation:

In this question, we use the costs of goods sold formula which is shown below:

Cost of goods sold = Opening inventory + Purchase - ending inventory

$233,000 = $18,000 + $230,000 - ending inventory

$233,000 = $248,000 - ending inventory

So, the ending inventory equals to

= $248,000 - $233,000

= $15,000

Simply we subtract the cost of goods sold from the opening inventory and purchase inventory so that the ending inventory can be computed