Question

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $61,200. The company's beginning merchandise inventory was $12,400 and its ending merchandise inventory was $22,000. What was the total amount of the company's merchandise purchases for the month

Answer 1

Answer: $70,800

Explanation:

Cost of Goods sold are the costs of either producing or acquiring the goods the company plans to sell and Purchases form part of them.

Cost of Goods Sold = Opening Merchandise inventory + Purchases - Closing Merchandise inventory

61,200 = 12,400 + Purchases - 22,000

Purchases = 61,200 - 12,400 + 22,000

Purchases = $70,800