Question

On June 1, 2013, Cardullo's purchased a case of Vermeiren Cookie Spread as inventory from its supplier for $200 and paid in cash. What was the cost of the case of Vermeiren Cookie Spread?

Answer 1

The cost of the case of Vermeiren Cookie Spread purchased by Cardullo's as inventory was $200, which is the amount they paid in cash to acquire it.

Step-by-step explanation:

The cost of a case of Vermeiren Cookie Spread purchased by Cardullo's on June 1, 2013, as inventory from its supplier was $200, which was paid in cash. This amount represents the cost of obtaining the goods and is a direct reflection of the expense that the business incurred to acquire the product for resale purposes. Determining the cost of inventory is essential for businesses as it impacts the determination of gross profit and the financial health of the business.