Question

Use the following data to calculate the cost of merchandise sold:

sales : $50,000
beginning inventory: $6000
purchases: $20000
purchase discounts: $1000
ending inventory: $4000

Answer 1

$29,000

Explanation:

To calculate the cost of merchandise sold, you can use the following formula:

Cost of Merchandise Sold = Sales - (Beginning Inventory + Purchases - Purchase Discounts - Ending Inventory)

Plugging in the values from the data provided, the cost of merchandise sold would be:

Cost of Merchandise Sold = $50,000 - ($6,000 + $20,000 - $1,000 - $4,000)

Cost of Merchandise Sold = $50,000 - $21,000

Cost of Merchandise Sold = $29,000

So, the cost of merchandise sold would be $29,000.