Question

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $70,600. The company's beginning merchandise inventory was $16,500 and its ending merchandise inventory was $30,000. What was the total amount of the company's merchandise purchases for the month

Answer 1

Answer:

$84,100

Explanation:

Haack incorporation cost of goods last year was $70,600

The beginning merchandise inventory was $16,500

The ending merchandise inventory was $30,000

Therefore the total amount of purchases can be calculated as follows

Cost of goods= beginning inventory + purchases-ending inventory.

70,600= 16,500+purchases-30,000

70,600-16,500= purchases - 30,000

54,100 = purchases - 30,000

54,100+30,000= purchases

Purchases= 84,100

Hence the total purchases is $84,100