- Financial Accounting & Bookkeeping
- Purchases, Inventory and Cost of Goods Sold (COGS)
Cost of goods sold and ending inventory data
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Desired ending inventory is 80% of beginning inventory. If cost of goods sold is $300,000, which of the following statements is true regarding purchases?
a. Purchases will be more than cost of goods sold
b. Purchases will be 80% of cost of goods sold
c. Purchases will equal cost of goods sold
d. Purchases will be less than cost of goods sold
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Discusses which of the given answers are correct.