Question

Tool Manufacturing purchased inventory for $5,300 and also paid a $260 freight bill. Tool Manufacturing returned 45​% of the goods to the seller and later took a 2​% purchase discount. Assume Tool Manufacturing uses a perpetual inventory system. What is Tool Manufacturing​'s final cost of the inventory that it​ kept? (Round your answer to the nearest whole​ number.)

Answer 1

$ 3,116.7 final cost of the inventory

Step-by-step explanation:

asset enter the accounting as the sum of all incurred cost which were necessary to obtain it. In this case we got:

5,300 invoice cost

- 2,385 return goods

2,915 nominal after return, subject to discount of 2%

- 58.3 discount granted of 2%

2,856.7‬ final amount to supplier

260 for fregith fees

3,116.7 final cost of the inventory