Using the following data for a recent period, calculate the beginning finished goods inventory: Sales.......................................................... $40,000

Beginning finished goods inventory......... ?

Cost of goods manufactured..................... $16,000

Ending finished goods inventory.............. $5,000 Cost of goods sold.................................... ? Gross margin............................................. $17,000

Administrative and selling expenses......... ?

Net operating income................................ $10,000 T

he beginning finished goods inventory was: a. $24,000 b. $23,000 c. $7,000 d. $12,000