Asked by Amina Shermatova on Jun 30, 2024
Verified
Gabel Inc.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
Merchandise Purchases
The procurement of goods for resale, typically in a retail or wholesale environment, not involving the manufacturing process.
Merchandise Inventory
The goods a company holds for the purpose of sale to customers.
Cost of Goods Sold
The total cost associated with making or buying the products that a company has sold during a period.
- Calculate cost of goods sold and understand its impact on profitability.
Verified Answer
SS
Sandy ShererJul 02, 2024
Final Answer :
D
Explanation :
Cost of goods sold = Beginning merchandise inventory + Purchases - Ending merchandise inventory = $13,000 + $63,000 - $15,000 = $61,000
Reference: CH01-Ref1
The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September.
The Northridge Store is just one of many stores owned and operated by the company.The Cosmetics Department is one of many departments at the Northridge Store.The central warehouse serves all of the company's stores.
Reference: CH01-Ref1
The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September.
The Northridge Store is just one of many stores owned and operated by the company.The Cosmetics Department is one of many departments at the Northridge Store.The central warehouse serves all of the company's stores.
Learning Objectives
- Calculate cost of goods sold and understand its impact on profitability.