Homework SourseSantos Inc had the following information for the preceding y
Santos Inc. had the following information for the preceding year:
Additional information for the year is as follows:
What was the ending Finished Goods Inventory balance on 12/31?
$20,000
$11,000
$54,000
$50,000
| Beginning Inventory (1/1) | Ending Inventory (12/31) | |||||
| Raw Materials Inventory | $ | 40,000 | $ | 30,000 | ||
| Work in Process Inventory | $ | 35,000 | $ | ?? | ||
| Finished Goods Inventory | $ | 30,000 | $ | ?? | ||
Solution
Unadjusted cost of goods sold=beginning finished goods inventory+Cost of goods manufactured-ending Finished Goods Inventory balance
544000=30000+5250000-ending Finished Goods Inventory balance
Hence ending Finished Goods Inventory balance=(30000+525000-544000)
which is equal to
=$11000.
