Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $68,200. The company's beginning merchandise inventory was $14,800 and its ending merchandise inventory was $26,300. What was the total amount of the company's merchandise purchases for the month?

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $68,200. The company's beginning merchandise inventory was $14,800 and its ending merchandise inventory was $26,300. What was the total amount of the company's merchandise purchases for the month?

Multiple Choice

• $79,700

  Correct
• $56,700
• $109,300
• $68,200

Explanation

Cost of goods sold = Beginning merchandise inventory + Purchases – Ending merchandise inventory

$68,200 = $14,800 + Purchases – $26,300

Purchases = $68,200 – $14,800 + $26,300 = $79,700

Thanks