Smith Company had an inventory balance of $12,000 on January 1 and $18,000 on December 31.The cost of goods sold during the period was $63,000.What is the purchase amount?

Question

Quizplus · Accepted Answer

The purchase amount can be calculated using the formula: Purchases = Ending Inventory - Beginning Inventory + Cost of Goods Sold. Therefore, Purchases = $18,000 - $12,000 + $63,000 = $69,000.

Smith Company Had an Inventory Balance of $12,000 on January