how to compute this problem step by step. did I do it correctly

Compute cost of goods sold using the following information, Merchandise inventory, beginning Cost of merchandise purchased Merchandise inventory, ending $ 12,500 85,500 18,500 Cost of Goods Sold is Computed as: Merchandise inventory, beginning $ 12,500 85,000 97.500 Goods available for sale (LessMerchandise inventory, ending Cost of goods sold 18,500 $ 79,000