Smith Company had an inventory balance of $13,000 on January 1 and $16,000 on December 31. The cost of goods sold during the period was $60,000. What is the purchase amount?

Question

Quizplus · Accepted Answer

We can use the following formula to calculate the purchase amount:

Purchase amount = Cost of goods sold + Ending inventory - Beginning inventory

Purchase amount = $60,000 + $16,000 - $13,000
Purchase amount = $63,000

Therefore, the correct answer is D) $63,000.

Smith Company Had an Inventory Balance of $13,000 on January