Question

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $69,800. The company's beginning merchandise inventory was $13,200 and its ending merchandise inventory was $29,300. What was the total amount of the company's merchandise purchases for the month?

Answer 1

cost of goods purchased= $85,900

Step-by-step explanation:

Giving the following information:

Last month the company's cost of goods sold was $69,800.

The company's beginning merchandise inventory was $13,200 and its ending merchandise inventory was $29,300.

To calculate the purchases, we need to use the following formula:

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

69,800 = 13,200 + cost of goods purchased - 29,300

69,800 - 13,200 + 29,300= cost of goods purchased

cost of goods purchased= $85,900