Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $150,000 on December 31, 20X2. During the year 20X2, the corporation purchased additional inventory of $375,000. If cost of goods sold for 20X2 is $470,000, what was the beginning inventory at January 1, 20X2?

Question

Noble

Mathematics

3 August, 11:05

Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $150,000 on December 31, 20X2. During the year 20X2, the corporation purchased additional inventory of $375,000. If cost of goods sold for 20X2 is $470,000, what was the beginning inventory at January 1, 20X2?

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Answers (1)

Know the Answer?

Livia Shah · Answer 1

beginning inventory is $245000

Step-by-step explanation:

Given data

ending inventory = $150,000

purchased additional inventory = $375,000

goods sold = $470,000

to find out

beginning inventory

solution

according to question beginning inventory is calculated by this formula i. e.

beginning inventory = (cost of goods sold + ending inventory) - amount of inventory purchase ... 1

now put all value cost of goods sold, ending inventory and amount of inventory purchase in equation 1 and we get beginning inventory

beginning inventory = (cost of goods sold + ending inventory) - amount of inventory purchase

beginning inventory = (470000 + 150000) - 375000

beginning inventory = 245000

so beginning inventory is $245000