The 2018 records of Thompson Company showed beginning inventory,$6,000; cost of goods sold,$14,000; and ending inventory,$8,000.The cost of purchases for 2018 was:
A)$12,000.
B)$10,000.
C)$9,000.
D)$16,000.

Question

Quizplus · Accepted Answer

Beginning inventory + Purchases = Goods available for sale - Cost of Goods Sold = Ending inventory BI + P = GAFS - COGS = EI $6,000 + P = GAFS - $14,000 = $8,000 GAFS = $8,000 + $14,000 GAFS = $22,000 $6,000 + P = $22,000
P = $16,000.

The 2018 Records of Thompson Company Showed Beginning Inventory,$6,000; Cost