Using the following information, what is the amount of cost of goods sold? Purch
ID: 2655253 • Letter: U
Question
Using the following information, what is the amount of cost of goods sold?
Purchases
$32,000
Purchases discounts
$960
Merchandise inventory September 1
5,700
Merchandise inventory September 30
6,370
Sales returns and allowances
910
Sales
63,000
Purchases returns and allowances
1,200
Freight In
1,040
a. $26,900
b. $20,530
c. $28,130
d. $30,210
Purchases
$32,000
Purchases discounts
$960
Merchandise inventory September 1
5,700
Merchandise inventory September 30
6,370
Sales returns and allowances
910
Sales
63,000
Purchases returns and allowances
1,200
Freight In
1,040
Explanation / Answer
Cost of goods sold = Purchase - Purchase discount - Increase in inventory - Purchase returns + Freight in
= $32,000 - $960 - ($6,370 - $5,700) - $1,200 + $1,040
= $30,210 which is option (d)
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