Question

g Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $84,000. The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000. What was the total amount of the company's merchandise purchases for the month

Answer 1

Answer:

$82,000

Explanation:

The movement or change in the inventory value at the start and end of a given period is due to the purchases and sales made during the period.

While the sales reduces the inventory balance, the purchases ( which when added to purchases gives the goods available for sale) increases the inventory balance.

let the amount of the company's purchases be h

$20,000 + h - $84,000 = $18,000

h = $82,000

The company's purchases for the month amounts to $82,000

Answer 2

Answer:

Cost of goods purchased= $82,000

Explanation:

Giving the following information:

Last month the company's cost of goods sold was $84,000. The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000.

We know that:

Cost of goods purchased= cost of goods sold + ending inventory - beginning inventory

Cost of goods purchased= 84,000 + 18,000 - 20,000= 82,000