# Cost of merchandise sold Based on the following data, determine the cast of merchandise sold for July: Increase in estimated returns inventory $34,9000 Merchandise inventory, July 1 190,850 Merchandise inventory, July 31 160,450 Purchases 1,126,000 Purchases returns and allowances 46,000 Purchases discounts 23,000 Freight in 17,500 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 6.38EX Textbook Problem ## Cost of merchandise soldBased on the following data, determine the cast of merchandise sold for July: Increase in estimated returns inventory$34,9000 Merchandise inventory, July 1 190,850 Merchandise inventory, July 31 160,450 Purchases 1,126,000 Purchases returns and allowances 46,000 Purchases discounts 23,000 Freight in 17,500

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 goods sold.

### Explanation of Solution

Following table shows the calculation of cost of goods sold.

 Calculation of Cost of Merchandise Sold For The Month Ended July Particulars Amount($) Amount($) Merchandise inventory, July 1 190,850 Cost of merchandise purchased: Purchases 1,126,000 Less: Purchase returns and allowances (46,000) Less: Purchase discounts (23...

### Want to see the full answer?

Check out a sample textbook solution.See solution

### Want to see this answer and more?

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

See solution