Lock Security Company updates its inventory perpetually.The company reported a beginning inventory of $1,500.During the year,the company recorded inventory purchases of $4,500 and cost of goods sold of $5,000.What was the amount of its ending inventory?
A) $1,000
B) $2,500
C) $2,600
D) $2,700

Question

Quizplus · Accepted Answer

The ending inventory is calculated as: Beginning Inventory + Purchases - Cost of Goods Sold = $1,500 + $4,500 - $5,000 = $1,000.

Lock Security Company Updates Its Inventory Perpetually