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Haar Inc. is a merchandising company. Last month the company\'s cost of goods so

ID: 2652314 • Letter: H

Question

Haar 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?

$95,600

$51,600

$70,800

$61,200

Haar 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?

Explanation / Answer

Haar Inc. $ Opening inventory 12400 Add: Purchases (Bal. fig) 70800 Less: COGS 61200 Closing inventory 22000 Opening inventory + purchases = COGS + Cl. Inventory Answer c: $ 70,800