Question

) Using the following information, what is the amount of cost of merchandise sold?

Purchases

$32,000

Purchases discounts

$960

Merchandise inventory September 1

5,700

Merchandise inventory
September 30

6,370

Sales returns and allowances

910

Sales

63,000

Purchases returns and allowances

1,200

Freight In

1,040

A. 26,900

B. 20,530

C. 30,210

D. 28,130

Answer 1

Answer:

C. 30,210

Explanation:

Cost of merchandise sold = cost of merchandise purchase - cost of merchandise left in inventory

= Purchases  of $32,000 - Purchases discounts  of $960 - Purchases returns and allowances  of $1,200 + Freight In  of $1,040

- ( Merchandise inventory  at  September 30  of $6,370 - Merchandise inventory September 1  of $5,700)

= 32,000- 960- 1,200+1,040 - 670 = 30,210