Calculate the Cost of Goods Sold for a Merchandiser Using

question 166

Multiple Choice

Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details. $$\begin{array} { | l | r | } \hline \text { Purchases } & \$ 510,000 \\\hline \text { Beginning Merchandise } & \\\text { Inventory } & 180,000 \\\hline \text { Purchase Returns and } & \\\hline \text { Allowances } & 50,000 \\\hline \text { Purchase Discounts } & 14,000 \\\hline \text { Freight In } & 15,000 \\\hline \text { Ending Merchandise Inventory } & 180,00 \\\hline\end{array}$$

• A) $510,000
• B) $461,000
• C) $476,000
• D) $821,000

---

Definitions:

Perfectly Competitive Firm

A company that operates in a perfectly competitive market, cannot influence the market price, and produces at an optimal output level.

Profit-maximizing

Profit-maximizing refers to a strategic approach by businesses to adjust their production and pricing to achieve the highest possible profit.

Perfectly Competitive Firm

A hypothetical business in a market where no single company can influence the market price or product quality, leading to an efficient allocation of resources.

Short Run

A period in economics during which at least one factor of production is fixed, limiting the ability to increase production in response to increased demand.