Question

Cortez Company updates its inventory records perpetually. The company's records showed a beginning inventory of $21,000, cost of goods sold of $29,000, and ending inventory of $23,000. How much inventory was purchased during the year?

Answer 1

Answer:

$31,000

Explanation:

Data provided

Cost of goods sold = $29,000

Beginning inventory = $21,000

Ending inventory = $23,000

The computation of inventory purchased during the year is shown below:-

Cost of goods sold = Beginning inventory + Purchase inventory - Ending inventory

$29,000 = $21,000 + Purchase - $23,000

Purchase inventory during the year = $31,000