During the current year, Gomez Company had beginning inventory of $2,400 and ending inventory of $1,200. The cost of goods sold was $9,600. What is the amount of inventory purchased during the year?

Question

Quizplus · Accepted Answer

The formula for cost of goods sold is:Beginning inventory + Purchases - Ending inventory = Cost of goods soldWe can rearrange this formula to solve for purchases:Purchases = Cost of goods sold + Ending inventory - Beginning inventoryPlugging in the given values, we get:Purchases = $9,600 + $1,200 - $2,400 = $8,400Therefore, the amount of inventory purchased during the year is $8,400.

During the Current Year, Gomez Company Had Beginning Inventory of $2,400