Question

Tyler Toys has beginning inventory for the year of $18,000. During the year, Tyler purchases inventory for $230,000 and has cost of goods sold equal to $233,000. Tyler's ending inventory equals_______.

Answer 1

Answer:

$15,000

Explanation:

Data provided in the question:

Beginning inventory for the year = $18,000

Inventory purchased = $230,000

Cost of goods sold = $233,000

Now,

Total goods available for sale

= Beginning inventory for the year + Inventory purchased

= $18,000 + $230,000

= $248,000

Therefore,

Tyler's ending inventory = Total goods available for sale - Cost of goods sold

= $248,000 - $233,000

= $15,000