The Merchant Tire Company provided the following information for the month of February: $$\begin{array} { l c }
\text { Cost of goods manufactured } & \$ 147,000 \
\text { Beginning finished goods inventory } & \$ 23,000 \
\text { Cost of goods sold } & \$ 129,000
\end{array}$$ The company's balance in their finished goods inventory account at the end of February is:
A)$23,000
B)$18,000
C)$5,000
D)$41,000

Question

The Merchant Tire Company provided the following information for the month of February: $$\begin{array} { l c } 
\text { Cost of goods manufactured } & \$ 147,000 \
\text { Beginning finished goods inventory } & \$ 23,000 \
\text { Cost of goods sold } & \$ 129,000
\end{array}$$ The company's balance in their finished goods inventory account at the end of February is:
A)$23,000
B)$18,000
C)$5,000
D)$41,000

Quizplus · Accepted Answer

The ending finished goods inventory is calculated as beginning finished goods inventory plus cost of goods manufactured minus cost of goods sold. So, $23,000 + $147,000 - $129,000 = $41,000.

The Merchant Tire Company Provided the Following Information for the Month