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What is the cost of ending inventory given the following factors?
Beginning inventory $5,000
Total production costs60,000
Cost of goods sold55,000
Direct labor40,000
A. $45000
B. $5000
C.$10000
D. $50000
Opening Inventory +Additions during the year - cost of goods sold
Answer option (c) >>>>>>>>> $10,000
C. 10,000
Beg + manufacturing cost - cost of sales
Opening + Manufacturing - Sold = Ending Inventory
5000=10000
Ans " C "
Beginning inventory= 10,000
+ Purchases = 5,000
- Cost of sales= 7,000
Ending inventory 8,000
Beginning inventory = $5,000
Add:Total production costs = $60,000
Less:Cost of goods sold =$55,000
Closing Inventory = $10,000 as per option C
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