BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

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

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

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

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe the three approaches to performance feedback interviews.

Foundations of Business (MindTap Course List)

What is multilevel security?

Accounting Information Systems

COST OF EQUITY WITH AND WITHOUT FLOTATION Javits Sons common stock currently trades at 30.00 a share. It is ex...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)