JC Manufacturing purchased inventory for $5300 and also paid a $ 260 freight bill. JC Manufacturing returned 45 % of the goods to the seller and later took a 2 % 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

Alisha Schultz

Business

16 December, 13:05

JC Manufacturing purchased inventory for $5300 and also paid a $ 260 freight bill. JC Manufacturing returned 45 % of the goods to the seller and later took a 2 % 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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Frankfurter · Answer 1

JC Manufacturing 's final cost of the inventory that it kept is $3117

Explanation:

The computation of the final cost of inventory is shown below:

= Purchase cost of inventory - returned goods - discounts + freight charges

= $5,300 - $2385 - $58.3 + $260

= $3,116.7 or $3,117

The returned goods is computed by

= Purchase cost of inventory * returned percentage

= $5,300 * 45%

= $2,385

And, the Discount is computed by

= (Purchase cost of inventory - returned goods) * discount rate

= ($5,300 - $2,385) * 2%

= $2,915 * 2%

= $58.30