Calculation of Cost of Goods Sold: Perlodic Inventory System Prepare the cost of goods sold section for Adams Gift Shop. The following amounts are known: Beginning merchandise inventory $27,000 Ending merchandise inventory 22,000 Purchases Purchases returns and allowances 3,900 Purchases discounts Freight-in 78,000 6,000 350 Adams Gift Shop Cost of Goods Sold Cost of goods sold: Cost of goods sold