Question

If Cost of Goods Sold is $300,000, beginning inventory is $29,000, and ending inventory is $30,000, then the purchases from suppliers (assume all on account) would be:_______. A. $59.000 B. $301,000 C. $359,000 D. $299,000

Answer 1

Answer:

B. $301,000

Explanation:

The computation of the purchased from suppliers is shown below:

As we know that

Cost of good sold = Opening Inventory + Purchase - Closing Inventory

$300,000 = $29,000 + Purchases - $30,000

Purchases = $300,000 + $30,000 - $29,000

= $301,000

Hence, the purchased from suppliers is $301,000

Therefore the correct option is b.

We simply applied the above formula so that the correct value could come

And, the same is to be considered