Based Upon the Following Data, Determine the Cost of Merchandise

question 199

Essay

Based upon the following data, determine the cost of merchandise sold for April. $$\begin{array} { l r } \text { Merchandise Inventory April } 1 & \$ 85,560 \\\text { Merchandise Invent ory April } 30 & 96,330 \\\text { Purchases } & 373,880 \\\text { Purchases Returns \& Allowances } & 14,760 \\\text { Purchases Discounts } & 10,900 \\\text { Freight In } & 4,135\end{array}$$

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Definitions:

Independent Companies

Firms that operate independently without being owned or controlled by another entity or conglomerate.

Specific Objective

A clearly defined and measurable goal that an organization or individual aims to achieve.

Resources

Assets or inputs used to produce goods and services, including natural, human, and capital resources.

Purchase Method

An accounting method used to consolidate the financial statements of two companies when one acquires another.