Question

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.)

Answer 1

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

Step-by-step 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