Using the Following Information, Determine the (A) Cost of Goods

question 19

Essay

Using the following information, determine the (a) cost of goods sold (show your work) and (b) gross profit. $\begin{array}{lr}\text { Net sales } & \$ 198,000 \\\text { Purchases } & 92,000 \\\text { Purchases returns and allowances } & 1,800 \\\text { Purchases discounts } & 1,250 \\\text { Freight-in } & 1,590 \\\text { Merchandise inventory, beginning of period } & 63,000 \\\text { Merchandise inventory, end of period } & 37,000\end{array}$