Question

"For Whitehair Company, beginning inventory is $12,000 and ending inventory is $15,000. Yearend account balances are: Freight-In $1,100 Purchases 50,000 Purchase Discounts 800 Purchase Returns and Allowances 1,250 Sales Discounts 2,500 Sales Returns and Allowances 3,600"Whitehair's Cost of Goods Purchased is $46,050. $49,050. $47,950. $51,100.

Answer 1

$49,050

Step-by-step explanation:

Given that,

beginning inventory = $12,000

ending inventory = $15,000

Freight-In = $1,100

Purchases = 50,000

Purchase Discounts = 800

Purchase Returns and Allowances = 1,250

Sales Discounts = 2,500

Sales Returns and Allowances = 3,600

Cost of goods purchased:

= purchases - purchase discounts - purchase returns & allowances + freight

= 50,000 - 800 - 1,250 + 1,100

= $49,050