Thompson company updates its inventory records perpetually. the company's records showed a beginning inventory of $600, cost of goods sold of $1,400, and ending inventory of $800. how much inventory was purchased during the year? $1,200 $1,000 $900

Question

Business

Zoey Frost

7 October, 13:04

Thompson company updates its inventory records perpetually. the company's records showed a beginning inventory of $600, cost of goods sold of $1,400, and ending inventory of $800. how much inventory was purchased during the year? $1,200 $1,000 $900

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Ashley Dalton · Answer 1

The total inventory can be calculated by adding the initial or beginning inventory which is equal to $600 and the cost of goods sold, $1,400. That is,

T = $600 + $1,400

T = $2,000

Then, we subtract the ending inventory of $800 from the calculated value.

S = $2,000 - $800

S = $1,200

Hence, the answer to this item is the first choice.