Question

CF Manufacturing purchased inventory for $5,300 and also paid a $280 freight in bill 2/10, net 30. CF Manufacturing returned 60% of the goods to the seller and paid the bill within the discount period. What is the final inventory cost

Answer 1

Answer: $2357.6

Step-by-step explanation:

Purchased Inventory = $5300

Less: purchase return = 60% × $5300 = 0.6 × $5300 = $3180

Amount = $2120

Less: purchase discount = 2% × $2120 = 0.02 × $2120 = $42.4

Amount = $2077.6

Add: Freight in: $280

Final Inventory cost = $2357.6