Question

during the year megans pet shops merchandise inventory decreased by 80,000 if the companys cost of goods sold for the year was 1,200,000 purchases would have been

Answer 1

$1,280,000 = cost of goods purchased

Step-by-step explanation:

Giving the following information:

Inventory decreased by $80,000

COGS= $1,200,000

If inventory decreased, the beginning inventory is lower than the beginning inventory. We will use the following formula:

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

1,200,000 = cost of goods purchased - 80,000

1,280,000 = cost of goods purchased