A company had purchased $10,000 of inventory in the month of January, took advantage of purchase discounts of $500, and paid $1000 to have the goods shipped to their factory. They paid $250 to insure the inventory against fire and spent $750 to store the inventory. The company did not return any of the inventory they purchased. What is the company's 'net purchases' for the month of January?

Question

Brenna Decker

Business

23 September, 09:11

A company had purchased $10,000 of inventory in the month of January, took advantage of purchase discounts of $500, and paid $1000 to have the goods shipped to their factory. They paid $250 to insure the inventory against fire and spent $750 to store the inventory. The company did not return any of the inventory they purchased. What is the company's 'net purchases' for the month of January?

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Answers (1)

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Cosmo · Answer 1

The company's net purchases for the month of January is $11,500

Explanation:

Item description Amount ($)

Purchase price 10,000

Less: purchase discount - 500

Add: purchasing related costs

Shipping costs + 1,000

Fire insurance + 250

Inventory storage costs + 750

Net purchases 11,500