Question

haack incorporated is a merchandising company. last month the companys cost of goods sold was $70,600. the companys beginning merchandise inventory was $16,500 and its ending merchandise inventory was $30,000. what was the total amount of the companys merchandise purchases for the month?

multiple choice
$70,600
$57,100
$117,100
$84,100

Explanation:

State the cost of goods sold formula

$$ \text{Cost of Goods Sold (COGS)} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} $$

Rearrange the formula to solve for purchases

$$ \text{Purchases} = \text{COGS} - \text{Beginning Inventory} + \text{Ending Inventory} $$

Substitute the given values and calculate

$$
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$$

Answer:

• (A) $70,600
• (B) $57,100
• (C) $117,100
• (D) $84,100 (Correct answer)