Haack Inc.is a merchandising company.Last month the company's cost of goods sold was $84,000.The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000.What was the total amount of the company's merchandise purchases for the month?

Question

Quizplus · Accepted Answer

Cost of goods sold = Beginning merchandise inventory + Purchases - Ending merchandise inventory
$84,000 = $20,000 + Purchases - $18,000
Purchases = $84,000 - $20,000 + $18,000 = $82,000

Haack IncIs a Merchandising Company