Gabel Incorporated is a merchandising company. Last month the company's merchandise purchases totaled $63,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month?
A) $91,000
B) $63,000
C) $65,000
D) $61,000

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning Inventory + Purchases - Ending Inventory. Therefore, COGS = $13,000 + $63,000 - $15,000 = $61,000.

Gabel Incorporated Is a Merchandising Company