Alabama Company's beginning and ending inventory amounts were $80,000 and $120,000, respectively. Cost of goods sold was $520,000. Alabama Company purchased of inventory.
A) $560,000
B) $480,000
C) $600,000
D) $520,000

Question

Quizplus · Accepted Answer

The formula to calculate purchases is: Purchases = Ending Inventory - Beginning Inventory + Cost of Goods Sold. Plugging in the values: Purchases = $120,000 - $80,000 + $520,000 = $560,000.

Alabama Company's Beginning and Ending Inventory Amounts Were $80,000 and $120,000