Gabel Inc is a merchandising company Last month the companys

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?

Solution

Cost of goods sold = Beginning inventory + Purchases - Ending inventory = 13,000 + 63,000 - 15,000 = $61,000