Wilburn Company reported the following data at year-end: Sales, $100,000; Beginning inventory, $8,000; Ending inventory, $6,000; Cost of goods sold, $60,000; and Gross margin, $40,000. What was the amount of merchandise purchases for the year?
A) $58,000
B) $40,000
C) $46,000
D) $68,000

Question

Quizplus · Accepted Answer

Merchandise purchases = Cost of goods sold + (Beginning inventory - Ending inventory)= $60,000 + ($8,000 - $6,000)= $60,000 + $2,000= $58,000

Wilburn Company Reported the Following Data at Year-End: Sales, $100,000;