Question

Gabrio Inc. is a merchandising company. Last month the company's merchandise purchases totaled $87,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $11,000. What was the company's cost of goods sold for the month

Answer 1

Answer: $95,000

Step-by-step explanation:

Given the following ;

Merchandise purchase total for the month = $87,000

Beginning merchandise inventory = $19,000

Ending merchandise inventory = $11,000

Cost of goods sold (COGS) is given by the formula ;

Cost of goods sold = Beginning inventory + purchases - ending inventory

Cost of goods sold = $87,000 + $19,000 - $11,000

Cost of goods sold = $95,000

Answer 2

COGS= $95,000

Step-by-step explanation:

Giving the following information:

Last month the company's merchandise purchases totaled $87,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $11,000.

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

In this case, the cost of goods manufactured is the merchandise purchased.

COGS= 19,000 + 87,000 - 11,000

COGS= $95,000