Taylor Co.had beginning inventory of $400 and ending inventory of $600.Taylor Co.had cost of goods sold amounting to $1,800.Based on this information,Taylor Co.must have purchased inventory amounting to:

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) formula is: Beginning Inventory + Purchases - Ending Inventory = COGS. Plugging in the values: $400 + Purchases - $600 = $1,800. Solving for Purchases gives $2,000.

Taylor CoHad Beginning Inventory of $400 and Ending Inventory of $600