Assuming that net cost of purchases was $39,000 during the year and that ending merchandise inventory was $1,000 less than the beginning merchandise inventory of $12,500, how much was cost of goods sold?

The cost of good sold amount is $40,000. The cost of good sold is a cost which is directly attributed to the sold inventory to measure its gross profit and price of the inventory often measured by measuring the cost of good sold first. The COGS amount can be calculated with this formula: Cost of Good Sold = Beginning inventory + Net Purchase - Ending inventory. Therefore, the calculation that we used is as following: 12,500+39,000-11,000=40,000.

The answer is c) it has a lower cost to attend 

Lol yes , why are you asking ?