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Given
Purchase
$92,100.00
purchase discount
$ 5,200.00
purchase return & allowance
$ 1,900.00
Freight in
$ 3,500.00
Beginning inventory
$15,000.00
Ending inventory
$17,500.00
A) $102,700
B) $95,600
C) $81,500
D) $88,500
E) $86,000
(D)88,500
Cost of goods purchased =92,100 -5,200 -1,900 +3,500 =88,500
its D )
$88500As Freight in is added to stock value. and Any discount, allowance and return are decreased from value of stock purchased.
Answer : (D)
COST of Goods Purchase = 92,100 - (5200 +1900 ) + 3500 =88,500
Cost of Good purchased
= Purchase - purchase discount - purchase return & allowance + Freight in
=+3500
=88500
D) $.....................................................................88500
Option 'D' is the correct answer!
Cost of goods purchased is:
$92,100 - ($5200+$1900) + $3500 = $88,500
Beginnig & ending inventory has nothing to do with the cost of goods purchased.
The correct answer is:
D) $88,500
Option D. is the answer of above question.
Answer is C..............................................
D IS THE CORRECT ANSWER =88500
The cost of goods purchase is equal to $88,500
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