Taylor CoHad Beginning Inventory of $400 and Ending Inventory of $600

question 69

Multiple Choice

Taylor Co.had beginning inventory of $400 and ending inventory of $600.Taylor Co.had cost of goods sold amounting to $1,800.What is the amount of inventory that was purchased during the period?

• A)$1,600
• B)$2,800
• C)$2,000
• D)$2,400

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Definitions:

Idle Capacity

Unused productive ability within a business, often resulting in inefficiency because resources are not being utilized to generate revenues.

Classification

A method of arranging entities in an organized system of categories.

Inventory Cost

The total cost associated with keeping goods in stock, including storage, insurance, taxes, and opportunity costs.

Equipment

Tangible assets used in the operation or production process of a business, ranging from office supplies to heavy machinery.