Gabriel Inc. is a merchandising company. Last month the company's merchandise purchases totaled £70,000. The company's beginning merchandise inventory was £15,000 and its ending merchandise inventory was £22,000. What was the company's cost of goods sold for the month
A)£63,000
B)£77,000
C)£107,000
D)£70,000

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as beginning inventory + purchases - ending inventory. Therefore, COGS = £15,000 + £70,000 - £22,000 = £63,000.