Gabrisch Inc. is a merchandising company. Last month the company's merchandise purchases totaled $90,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) can be calculated using the formula: COGS = Beginning Inventory + Purchases - Ending Inventory. 
So, COGS = $13,000 + $90,000 - $22,000 = $81,000. Therefore, option D is the correct answer.