In 2010, the BowWow Company purchased 11,752 units from its supplier at a cost of $ 11.73 per unit. BowWow sold 18,971 units of its product in 2010 at a price of $ 24.86 per unit. BowWow began 2010 with $ 864,593 in inventory (inventory is carried at a cost of $ 11.73 per unit). Using this information, compute BowWow's 2010 ending inventory balance (in dollars).

Ending inventory balance is $ 779,914.13  

Explanation:

The cost of goods sold formula can be used to determine the ending inventory by rearranging the formula and making the ending inventory the subject of the formula:

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

ending inventory=beginning inventory+inventory purchased-costs of goods sold

ending inventory=$864,593+(11,752*$11.73)-(18971*$11.73)=$ 779,914.13  

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