Calculate the Cost of Goods Sold for a Merchandiser Using

question 102

Multiple Choice

Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details. $$\begin{array} { | l | r| } \hline \text { Purchases } & \$ 510,000 \\\hline \text { Beginning Merchandise Inventory } & 175,000 \\\hline \text { Purchase Returns and Allowances } & 50,000 \\\hline \text { Purchase Discounts } & 12,000 \\\hline \text { Freight In } & 18,000 \\\hline \text { Ending Merchandise Inventory } & 160,000 \\\hline\end{array}$$

• A)$510,000
• B)$481,000
• C)$499,000
• D)$801,000

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Definitions:

Equilibrium Output

The level of production at which the quantity of goods produced equals the quantity of goods demanded.

Keynesian Approach

An economic theory proposing that government intervention through fiscal policies (spending and taxes) can affect the overall level of economic activity, stabilizing the economy.

Fiscal Policy

Government strategies used to influence economic conditions through spending and taxation.

Budget Deficits

The situation where a government's expenditures exceed its revenues, leading to the accumulation of debt.