Purchases from Inventory Turnover Formula

Steps:

• Calculate average inventory: ($8000 +$6000) / 2 = $7000
• Calculate cost of goods sold (COGS): 5 × $7000 =$35000
• Calculate purchases: COGS + closing inventory - opening inventory = $35000 +$6000 - $8000 =$33000

The calculation yields $33000, which does not match any option; the question appears to have an error in numbers or choices.

Why B is correct:

• Not applicable; no option matches the formula Purchases = (Turnover × Average Inventory) + Closing - Opening.

Why the others are wrong:

• A: $9200 ignores proper COGS derivation from average inventory.
• C: $3200 underestimates COGS by using incorrect average.
• D: $3280 similarly misapplies the turnover to inventory values.

Final answer: Not enough information.