Given the following for a company: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100, find the company's cost of merchandise sold.
A)$21,560
B)$20,190
C)$20,910
D)$21,650
E)None of these

Question

Quizplus · Accepted Answer

The cost of merchandise sold can be calculated using the formula: Beginning Inventory + Purchases - Purchase Discounts - Ending Inventory = Cost of Merchandise Sold. Plugging in the given values: $5,000 + $21,800 - $790 - $5,100 = $20,910.

Given the Following for a Company: Sales $80,000, Beginning Inventory