Question

Yang and Min Inc is a retailer of contemporary furniture. You are told that Yang and Min's ending inventory is $200,000 and its cost of goods sold is $500,000. Yang and Min had $100,000 of inventory at the beginning of the year. What was the dollar amount of goods purchased by Yang and Min during the year?

A) $600,000
B) $400,000
C) $300,000
D) $200,000"

Answer 1

The dollar amount of goods purchased by Yang and Min Inc during the year was calculated using the COGS formula and was found to be $600,000.

Step-by-step explanation:

To calculate the dollar amount of goods purchased by Yang and Min during the year, we use the cost of goods sold (COGS) formula:

COGS = Opening Inventory + Purchases - Closing Inventory

According to the information provided:

• Ending Inventory: $200,000
• Cost of Goods Sold: $500,000
• Beginning Inventory: $100,000

We can rearrange the formula to solve for Purchases:

Purchases = COGS + Closing Inventory - Opening Inventory

Purchases = $500,000 + $200,000 - $100,000

Purchases = $600,000

Thus, the dollar amount of goods purchased by Yang and Min Inc during the year was $600,000.