Question

Haala Inc. is a merchandising company. Last month the company's cost of goods sold was $68,000. The company's beginning merchandise inventory was $11,000 and its ending merchandise inventory was $17,000. What was the total amount of the company's merchandise purchases for the month

Answer 1

Answer: $74,000

Step-by-step explanation:

GIVEN THE FOLLOWING ;

COST OF GOODS SOLD = $68,000

BEGINNING INVENTORY = $11,000

ENDING INVENTORY = $17,000

PURCHASES FOR THE MONTH =?

USING THE RELATION:

COST OF GOODS SOLD = BEGINNING INVENTORY + PURCHASE MADE - ENDING INVENTORY

$68,000 = $11,000 + PURCHASE MADE - $17,000

$68,000 + $17,000 - $11,000 = PURCHASE MADE

$85,000 - $11,000 = PURCHASE MADE

$74,000 = PURCHASE MADE FOR THE MONTH

Answer 2

$74,000= cost of goods purchased

Step-by-step explanation:

Giving the following information:

Last month the company's cost of goods sold was $68,000. The company's beginning merchandise inventory was $11,000 and its ending merchandise inventory was $17,000.

We know that:

COGS= beginning finished inventory + cost of goods purchased- ending finished inventory

68,000= 11,000 + cost of goods purchased - 17,000

74,000= cost of goods purchased