Asked by Cindy Vuong on Jun 21, 2024
Verified
Gabel Inc. is a merchandising company. Last month the company's merchandise purchases totalled $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) $65,000.
B) $91,000.
C) $61,000.
D) $63,000.
Cost Of Goods Sold
represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.
Merchandise Purchases
The acquisition of goods that a company intends to resell to customers.
- Evaluate the costs related to manufacturing and the cost of goods sold.
Verified Answer
RN
Richard NhlemaJun 24, 2024
Final Answer :
C
Explanation :
Beginning inventory + Purchases - Ending inventory = Cost of goods sold
$13,000 + $63,000 - $15,000 = $61,000
$13,000 + $63,000 - $15,000 = $61,000
Learning Objectives
- Evaluate the costs related to manufacturing and the cost of goods sold.