# Cost of merchandise sold Based on the following data, determine the cost of merchandise sold for November: Increase in estimated returns inventory $14,500 Merchandise inventory, November 1 28,000 Merchandise inventory, November 30 31,500 Purchases 475,000 Purchases returns and allowances 15,000 Purchases discounts 9,000 Freight in 7,000 BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 #### Solutions Chapter Section Chapter 6, Problem 6.37EX Textbook Problem ## Cost of merchandise soldBased on the following data, determine the cost of merchandise sold for November: Increase in estimated returns inventory$14,500 Merchandise inventory, November 1 28,000 Merchandise inventory, November 30 31,500 Purchases 475,000 Purchases returns and allowances 15,000 Purchases discounts 9,000 Freight in 7,000

Expert Solution
To determine

Cost of Goods Sold

Cost of goods sold indicates the costs involved for the inventory sold by the business in a specific period of time. Its mathematical representation is as below:

Cost of Goods Sold=Beginning Inventory+PurchasesEnding Inventory

To Calculate: The cost of merchandise sold.

### Explanation of Solution

Following table shows the calculation of cost of merchandise sold.

 Calculation of Cost of Merchandise Sold For The Month of November Particulars Amount($) Amount($) Merchandise inventory, November 1 28,000 Cost of merchandise purchased: Purchases 475,000 Less: Purchase returns and allowances (15,000) Less: Purchase discounts

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