A company provided the following dа ta: sales, $500,000; beginning inventory, $40,000; ending inventory, $45,000; and gross profit, $150,000. What was the amount of inventory purchased during the year?

Question

Business

Landon Rosario

6 November, 07:09

A company provided the following dа ta: sales, $500,000; beginning inventory, $40,000; ending inventory, $45,000; and gross profit, $150,000. What was the amount of inventory purchased during the year?

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Answers (1)

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June Shepard · Answer 1

Revenue minus cost of sales is equal to gross profit

so inventory purchase, beginning inventory and ending inventory are in cost of sales

Formula will be Revenu-cost of sales (beginning inventory + purchased inventory - ending inventory) = Gross profit

So 500000 - (40000+x-45000) = 150000

then you can make x as the subjects of the formula and you can easily get the answer