Lacy's Department Store has budgeted cost of goods sold of $42,000 for its men's suits in March.Management also wants to have $7,500 of men's suits in inventory at the end of March to prepare for the summer season.Beginning inventory of men's suits for March is expected to be $5,500.What dollar amount of men's suits should be purchased in March?

Question

Quizplus · Accepted Answer

To find the dollar amount of men's suits to be purchased, use the formula: Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory. So, Purchases = $42,000 + $7,500 - $5,500 = $44,000.

Lacy's Department Store Has Budgeted Cost of Goods Sold of $42,000