 Mathematics
16 September, 21:46

# Stone Pine Corporation, a calendar year taxpayer, has ending inventory of \$150,000 on December 31, 20X2. During the year 20X2, the corporation purchased additional inventory of \$375,000. If cost of goods sold for 20X2 is \$470,000, what was the beginning inventory at January 1, 20X2?

+2
1. 16 September, 22:44
0
beginning inventory is \$245000

Step-by-step explanation:

Given data

ending inventory = \$150,000

goods sold = \$470,000

to find out

beginning inventory

solution

according to question beginning inventory is calculated by this formula i. e.

beginning inventory = (cost of goods sold + ending inventory) - amount of inventory purchase ... 1

now put all value cost of goods sold, ending inventory and amount of inventory purchase in equation 1 and we get beginning inventory

beginning inventory = (cost of goods sold + ending inventory) - amount of inventory purchase

beginning inventory = (470000 + 150000) - 375000

beginning inventory = 245000

so beginning inventory is \$245000