Use the following data to calculate the cost of merchandise sold:
sales: $80,000
beginning inventory: $5000 purchases: $21,800
purchase discounts: $790
ending inventory: $5,100

Cost of merchandise sold = Beginning inventory + purchases -  [purchase discount +ending inventory].
Cost of merchandise sold = 5000 + 21,800 - [790 + 5,100]
 26, 800 - 5,890 = 20,910
Therefore, the amount of money that is used to produce the merchandise sold is $20, 910.