Question

merchandising company. Last month the company's cost of goods sold was $70,600. The company's beginning merchandise inventory was $16,500 and its ending merchandise inventory was $30,000. What was the total amount of the company's merchandise purchases for the month?

Answer 1

The total amount of the company's merchandise purchases for the month will be equal to:

$84,100

Step-by-step explanation:

a) Data and Calculations:

Cost of goods sold = $70,600

Beginning Inventory = $16,500

Ending Inventory = $30,000

Purchases = x

Cost of goods sold = Beginning inventory + Purchases - Ending Inventory

$70,600 = $16,500 + Purchases - $30,000

Therefore $70,600 + $30,000 = Cost of goods available for sale

and Beginning inventory ($16,500) + Purchases = Cost of goods available for sale.

Purchases = $100,600 - $16,500

Purchases = $84,100