Gabat Inc. is a merchandising company. Last month the company's merchandise purchases totaled $67,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?
A)$108,000
B)$67,000
C)$64,000
D)$70,000

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated using the formula:

COGS = Beginning inventory + Purchases - Ending inventory

Substituting the given values, we get:

COGS = $19,000 + $67,000 - $22,000
COGS = $64,000

Therefore, the company's cost of goods sold for the month was $64,000. The correct answer is C.

Gabat Inc Is a Merchandising Company