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Beginning inventory was $4,000, purchases totaled $22,000, and sales were $20,000. What is the ending inventory? A. $2,000 B. $4,000 C. $6,000 D. $8,000

Respuesta :

Aliwohaish12
Begging inventory 4000
Add purchase 22000
Less sales 20000

Ending inventory 6000

Answer:

The correct option is C.

Step-by-step explanation:

Given information: Beginning inventory = $4,000, purchases = $22,000, and sales = $20,000.

Formula for change in inventory:

Change in inventory = Purchases - Sales

[tex]\text{Change in inventory} =22000-20000=2000[/tex]

Formula for Ending inventory:

Ending inventory = Beginning inventory + Change in inventory

[tex]\text{Ending inventory}=4000+2000[/tex]

On simplification we get

[tex]\text{Ending inventory}=6000[/tex]

Therefore the correct option is C.