Question

Cost of Merchandise Sold Based on the following data, determine the cost of merchandise sold for November: Increase in estimated returns inventory $8,900 Merchandise inventory, November 1 14,900 Merchandise inventory, November 30 28,600 Purchases 298,200 Purchases returns and allowances 10,100 Purchases discounts 6,000 Freight in 4,200

Answer 1

Answer:

COGS= $272,000

Explanation:

Giving the following information:

Merchandise inventory, November 1: 14,900

Merchandise inventory, November 30: 28,600

Purchases 298,200

Purchases returns and allowances 10,100

Purchases discounts 6,000

Freight in 4,200

Cost of goods purchased= purchases - Purchases returns and allowances - Purchases discounts + Freight in

Cost of goods purchased= 298,200 - 10,100 - 6,600 + 4,200

Cost of goods purchased= 285,700

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 14,900 + 285,700 - 28,600= 272,000