Question

Zephron Music purchased inventory for $ 4,900 and also paid a $ 360 freight bill. Zephron Music returned 45â% of the goods to the seller and later took a 2â% purchase discount. Assume Zephron Music uses a perpetual inventory system. What is Zephron Musicâ's final cost of the inventory that itâ kept? (Round your answer to the nearest wholeâ number.)

Answer 1

$3,028

Step-by-step explanation:

The computation of the final cost of inventory is shown below:

= Inventory purchased amount - returned goods - purchase discount + freight charges

= $4,900 - $2,205 - $26.95 + $360

= $3,028

The discount = (Inventory purchased amount - returned goods) × discount rate

= ($4,900 - 45% of $4,900) × 1%

= $2,695 × 1%

= $26.95