Question

You are missing some of your purchase receipts and trying to determine what your total purchases were for the year. During last year, your beginning inventory was $45,000, your ending inventory was $28,000, and your cost of goods sold was $21,000. How much were your purchases?

Answer 1

$17,000

Step-by-step explanation:

Beginning inventory $45,000

Less ending inventory $28,000

Balance $17,000

Therefore purchase will be $17,000

Answer 2

cost of goods purchased= $4,000

Step-by-step explanation:

Giving the following information:

During last year, your beginning inventory was $45,000, your ending inventory was $28,000, and your cost of goods sold was $21,000

We need to use the following formula:

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

21,000= 45,000 +cost of goods purchased - 28,000

cost of goods purchased= $4,000