From the following details of a merchandiser, calculate the Cost of Goods Sold. (Assume the merchandiser uses the periodic inventory system
)
Net Sales $198,000
Purchases 92,000
Purchase Returns and Allowances 1,800
Purchase Discounts 1,400
Freight In 1,350
Beginning Merchandise Inventory 62,000
Ending Merchandise Inventory 36,000
A) $116,150
B) $62,800
C) $114,800
D) $54,150
A .Calculation of Cost of Goods Sold:
Beginning Merchandise Inventory $62,000
Purchases $92,000
Less: Purchase Returns and Allowances 1,800
Less: Purchase Discounts 1,400
Net Purchases $88,800
Plus: Freight In 1,350
Net Cost of Purchases 90,150
Cost of Goods Available for Sale $152,150
Less: Ending Inventory 36,000
Cost of Goods Sold $116,150
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