Jackson Manufacturing Company had a beginning inventory of $24,500. During the year, the company recorded inventory purchases of $140,000 and cost of goods sold of $69,000. The ending inventory must equal:

ending finished inventory= $95,500

Explanation:

Giving the following information:

Beginning inventory= $24,500.

Purchases=  $140,000

Cost of goods sold of $69,000

To calculate the ending inventory, we need to use the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

69,000= 24,500 + 140,000 - ending finished inventory

ending finished inventory= 164,500 - 69,000

ending finished inventory= $95,500

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