Question

Jesper Co begins its next year of operations with a Beginning Supplies balance of 1,400. The end of period count of inventory revealed an Ending Supply balance of 4,500. If COGS for the same period was 36,700, Purchases must have been what? 0 33.600 35.300 39.800 36.700​

Answer 1

Purchases= $39,800

Explanation:

Giving the following information:

Beginning Supplies= 1,400

Ending Supply balance= 4,500

COGS= 36,700

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

Purchases= COGS + desired ending inventory - beginning inventory

Purchases= 36,700 + 4,500 - 1,400

Purchases= $39,800