Answer:
Gabel Inc.
The company's cost of goods sold for the month is:
$61,000
Explanation:
a) Data and Calculations:
Beginning inventory = $13,000
Purchases 63,000
Goods available for sale 76,000
less Ending inventory 15,000
Cost of goods sold $61,000
b) A company's cost of goods sold is the difference between the cost of goods available for sale and its ending inventory of merchandise. This implies that the company allocates the cost of goods available for sale (which is the function of the beginning inventory and the purchases made during the period) between the cost of goods sold and the cost of the ending inventory based on the inventory valuation method in use.
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