Question

Buckeye Co. had beginning inventory of $18,000, cost of goods sold of $42,000, and ending inventory of $24,000. Purchases were:

A) $36,000.
B) $30,000.
C) $27,000.
D) $48,000.

Answer 1

The purchases for Buckeye Co. can be calculated using the formula: Purchases = Beginning Inventory + Cost of Goods Sold - Ending Inventory. Plugging in the given values, the correct answer is $36,000 (Option A).

Step-by-step explanation:

To find the purchases, we can use the formula: Purchases = Beginning Inventory + Cost of Goods Sold - Ending Inventory.

Given that the beginning inventory is $18,000, the cost of goods sold is $42,000, and the ending inventory is $24,000, we can plug in these values into the formula:

Purchases = $18,000 + $42,000 - $24,000 = $36,000.

Therefore, the correct answer is $36,000 (Option A).