45. A retailer maintains a book (perpetual) inventory system in which all figures are kept at cost values. The beginning-of-month inventory as of December 1 is $100,000; the purchases in December equal $80,000; and December's sales (at cost) equal $63,000. The beginning of month inventory for January 1 then equals _____. Select one:
Answer : The answer is option b.
The ending inventory of December is the beginning inventory of 1st January. So,
Ending inventory = Beginning inventory + Purchases - Sales
Ending inventory of December = 100,000 + 80,000 - 63,000 = $117,000 .
As the ending inventory of December is the beginning inventory of January hence the beginning inventory of 1st January is $117,000.
Hence except option b other options are not correct. Therefore, option b is the correct answer.
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