Selected information regarding a company's most recent quarter follows (all data in thousands).

What was the beginning finished goods inventory?
A)$1,740
B)$250
C)$1,060
D)$860

Question

Selected information regarding a company's most recent quarter follows (all data in thousands).

What was the beginning finished goods inventory?
A)$1,740 
B)$250 
C)$1,060 
D)$860

Quizplus · Accepted Answer

The beginning finished goods inventory is always included in the cost of goods sold calculation, and in this case, the cost of goods sold was $2,000 and the ending finished goods inventory was $1,490, so the beginning finished goods inventory must have been $250 (i.e. $2,000 + $250 - $1,490 = $760, which represents the cost of goods manufactured for the quarter).

Selected Information Regarding a Company's Most Recent Quarter Follows (All