Use the information above to answer the following question.What is the amount of ending inventory?
A)$720,000
B)$150,000
C)$70,000
D)$650,000

Question

Quizplus · Accepted Answer

The amount of ending inventory is calculated by subtracting the cost of goods sold from the beginning inventory plus purchases. Therefore, ending inventory = ($250,000 + $800,000) - $500,000 = $550,000. Option C, $70,000, is not a viable answer based on the given information.

Use the Information Above to Answer the Following Question