Answer:
Cost of merchandise sold $ 845
Explanation:
Beginning merchandise inventory $259
Add Purchased merchandise inventory $695
Cost of merchandise available for sale $ 954
Less Ending merchandise inventory $109
Cost of merchandise sold $ 845
The periodic inventory system allocates the cost of goods sold at the end of the period. It also allocates the cost of goods available for sale between the cost of goods sold and ending inventory at the end of a period.
Therefore total amount is calculated.
