Omni Manufacturing reported cost of goods sold of $547,000,beginning and ending inventory of $76,400 and $68,600,respectively,and beginning and ending accounts payable of $39,700 and $27,500,respectively.Cash payments for merchandise inventory during the year were:

Question

Quizplus · Accepted Answer

To calculate cash payments for merchandise inventory, we start with the cost of goods sold (COGS) and adjust it for the change in inventory and accounts payable. The formula is: COGS + Ending Inventory - Beginning Inventory + Beginning Accounts Payable - Ending Accounts Payable. Plugging in the numbers: $547,000 + $68,600 - $76,400 + $39,700 - $27,500 = $551,400.

Omni Manufacturing Reported Cost of Goods Sold of $547,000,beginning and Ending