Based on the following data, determine the cost of merchandise sold for November:

Based on the following data, determine the cost of merchandise sold for November:


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






Answer:

Cost of merchandise sold:
Merchandise inventory, November 1 $ 28,000
Purchases $475,000
Less: Purchases returns and
allowances $15,000
Purchases discounts 9,000 24,000
Net purchases $451,000
Add freight in 7,000
Cost of merchandise purchased 458,000
Merchandise available for sale $486,000
Less merchandise inventory, November 30 31,500
Cost of merchandise sold $454,500





Based on the following data, determine the cost of merchandise sold for July:


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





Answer:

Cost of merchandise sold:
Merchandise inventory, July 1 $ 190,850
Purchases $1,126,000
Less: Purchases returns and
allowances $46,000
Purchases discounts 23,000 69,000
Net purchases $1,057,000
Add freight in 17,500
Cost of merchandise purchased 1,074,500
Merchandise available for sale $1,265,350
Less merchandise inventory, July 31 160,450
Cost of merchandise sold $1,104,900