Grand Rapids Rafting Company recorded the following data for the month of October: $\begin{array}{ll}
\text { Cost of beginning inventory } & \$ 46,000 \
\text { Cost of ending inventory } & \$ 32,000 \
\text { Cost of goods sold } & \$ 122,000
\end{array}$ Inventory purchases for the month of October total:
A)$108,000
B)$136,000
C)$200,000
D)$44,000

Question

Quizplus · Accepted Answer

To find the inventory purchases, use the formula: Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold. Plugging in the values: $46,000 + Purchases - $32,000 = $122,000. Solving for Purchases gives $108,000.

Grand Rapids Rafting Company Recorded the Following Data for the Month