Question

Acme, Inc. had cost of goods sold of 2000. If beginning inventory was 2100 and ending inventory was 500, Acme's purchases must have been _______.

Answer 1

Acme, Inc.'s purchases can be calculated using the formula: Purchases = COGS + Ending Inventory - Beginning Inventory. By inserting the given values, the purchases come out to be $400.

Step-by-step explanation:

The question aims to ascertain Acme, Inc.'s purchases during a certain period, given that we have the following information:

• Cost of Goods Sold (COGS): $2000

• Beginning Inventory: $2100

• Ending Inventory: $500

To determine the purchases, we can use the following formula:

Purchases = COGS + Ending Inventory - Beginning Inventory

Plugging in the given values:

Purchases = $2000 + $500 - $2100

Purchases = $400

Therefore, Acme's purchases must have been $400.