Broad,Inc.had a beginning inventory of $50,000 and an ending inventory of $80,000.Its Cost of Goods Sold for the year was $970,000.What was the amount of purchases that it made for the year?
A)$940,000
B)$1,000,000
C)$1,050,000
D)$1,060,000

Question

Quizplus · Accepted Answer

Ending inventory = Beginning inventory + Purchases − Cost of goods sold
Purchases = Ending inventory − Beginning inventory + Cost of goods sold
= $80,000 − $50,000 + $970,000 = $1,000,000

Broad,IncHad a Beginning Inventory of $50,000 and an Ending Inventory