Question

If cost of goods sold is​ $230,000, beginning inventory is​ $50,000, and ending inventory is​ $37,000, then the purchases from suppliers​ (assume all on​ account) would​ be: a. ​$217,000 b. ​$317,000 c. ​$230,000 d. ​$243,000

Answer 1

The purchases from suppliers on account would be $217,000, calculated by using the equation: Cost of Goods Sold (COGS) = Beginning Inventory + Purchases - Ending Inventory.

Step-by-step explanation:

If cost of goods sold is $230,000, beginning inventory is $50,000, and ending inventory is $37,000, then the purchases made from suppliers would be calculated as follows:

Cost of Goods Sold (COGS) = Beginning Inventory + Purchases - Ending Inventory

$230,000 = $50,000 + Purchases - $37,000

Purchases = COGS - Beginning Inventory + Ending Inventory

Purchases = $230,000 - $50,000 + $37,000 = $217,000

Thus, the purchases from suppliers on account would be $217,000.