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:

Cost of goods sold = $95,000

Explanation:

Cost of goods sold  is computed as

Opening stock + purchases - closing inventory

The figure is always subtracted from the sales revenue to degtremine the gross profit

So we compute same for Gabrio Inc

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

                               = $95,000

Cost of goods sold = $95,000