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29 March, 12:28

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

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  1. 29 March, 14:48
    0
    COGS = $95,000

    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
  2. 29 March, 15:42
    0
    Answer: $95,000

    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
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