How do you compute the purchases from suppliers:
A)Cost of goods sold + ending inventory + beginning inventory.
B)Cost of goods sold - ending inventory - beginning inventory.
C)Cost of goods sold + ending inventory - beginning inventory.
D)Cost of goods sold - ending inventory + beginning inventory.

Question

Quizplus · Accepted Answer

The purchases from suppliers can be computed by adding the cost of goods sold to the ending inventory and then subtracting the beginning inventory. This is because purchases are the total amount of goods acquired during a period, which includes the cost of goods sold as well as the change in inventory levels. Therefore, the formula to calculate purchases is: 
Purchases = Cost of goods sold + Ending inventory - Beginning inventory. 
Option C is the correct formula that follows this logic.

How Do You Compute the Purchases from Suppliers