Use this information to answer the following question. In addition,beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000.
-Net cost of purchases for the period were
A)$37,000.
B)$21,000.
C)$27,000.
D)$33,000.

Question

Use this information to answer the following question.  In addition,beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000.
-Net cost of purchases for the period were
A)$37,000. 
B)$21,000. 
C)$27,000. 
D)$33,000.

Quizplus · Accepted Answer

The formula to calculate net cost of purchases is beginning merchandise inventory + purchases - ending merchandise inventory. Here, beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000. So, net cost of purchases will be $27,000, which is option C.

Use This Information to Answer the Following Question