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.