purchased inventory for $ 5 comma 500 and also paid a $ 290 freight bill. JC Manufacturing returned 30 % of the goods to the seller and later took a 3 % purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing 's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)

Question

Cesar

Business

20 December, 02:03

purchased inventory for $ 5 comma 500 and also paid a $ 290 freight bill. JC Manufacturing returned 30 % of the goods to the seller and later took a 3 % purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing 's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)

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Answers (1)

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Gabrielle · Answer 1

JC Manufacturing 's final cost of the inventory is $3,975

Explanation:

The computation of the final cost is shown below:

= Cost of inventory purchased - purchase returns and allowances - purchase discounts + freight in charges

where,

Cost of inventory purchased = $5,500

Purchase return and allowances = $5,500 * 30% = $1,650

Purchase discount = $5,500 * 3% = $165

And, the freight in charges is $290

Now put these values to the above formula

So, the value would equal to

= $5,500 - $1,650 - $165 + $290

= $3,975