Use this information to answer the following question. In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net cost of purchases for the period were
A) $74,000.
B) $42,000.
C) $54,000.
D) $66,000.

Question

Use this information to answer the following question.  In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net cost of purchases for the period were
A) $74,000. 
B) $42,000. 
C) $54,000. 
D) $66,000.

Quizplus · Accepted Answer

Using the formula for calculating net purchases - beginning inventory + purchases - ending inventory, we get:
Net purchases = $80,000 - $22,000 + X - $14,000
Net purchases = $44,000 + X
Substituting the given total purchases of $80,000, we get:
Net purchases = $44,000 + $80,000 - $22,000 - $14,000
Net purchases = $54,000
Therefore, the net cost of purchases for the period was $54,000.

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