Use this information to answer the following question. $$\begin{array} {| l | r | r | }
\hline \text { Account Name } & { \text { Debit } } & { \text { Credit } } \
\hline \text { Sales } & & 300,000 \
\text { Sales Retums and Allowances } & 10,000 & \
\text { Purcha5es } & 53,000 & \
\text { Purchases Returns and Allowances } & & 8,000\
\text { Freight-In } & 12,000 & \
\text { Selling Exgenses } & 30,000 & \
\text { General and Administrative Exgenses } & 110,000 &\
\hline
\end{array}$$ In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net cost of purchases for the period were

Question

Use this information to answer the following question. $$\begin{array} {| l | r | r | } 
\hline \text { Account Name } &  { \text { Debit } } & { \text { Credit } } \
\hline \text { Sales } & & 300,000 \
\text { Sales Retums and Allowances } & 10,000 & \
\text { Purcha5es } & 53,000 & \
\text { Purchases Returns and Allowances } & & 8,000\
\text { Freight-In } & 12,000 &  \
\text { Selling Exgenses } & 30,000 & \
\text { General and Administrative Exgenses } & 110,000 &\
\hline
\end{array}$$ In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net cost of purchases for the period were

Quizplus · Accepted Answer

To find the net cost of purchases, we need to subtract the beginning inventory from the sum of ending inventory and cost of goods sold. We are given the beginning and ending inventory. Cost of goods sold can be calculated as follows:

Beginning inventory + Purchases - Ending inventory = Cost of goods sold 
$22,000 + Purchases - $14,000 = Cost of goods sold 
Purchases = $14,000 + Cost of goods sold - $22,000 
Purchases = $-8,000 + Cost of goods sold

We can see that the net purchases must be $8,000 more than the cost of goods sold. From the given information, we know that the cost of goods sold is $49,000. Thus, the net cost of purchases must be $49,000 + $8,000 = $57,000. Therefore, the best choice is C.

Use This Information to Answer the Following Question In Addition,beginning Merchandise Inventory Was $22,000 and Ending Merchandise Inventory