managerial accounting question 5

Haar Inc. is a merchandising company. Last month the company's cost of goods sold was $70,300. The company's beginning merchandise inventory was $19,700 and its ending merchandise inventory was $27,700. What was the total amount of the company's merchandise purchases for the month?

	$78,300
	$62,300
	$117,700
	$70,300

Purchases = Cost of goods sold + Ending merchandise inventory - Beginning merchandise inventory
= $70,300 + $27,700 - $19,700
= $78,300