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

Answer:

  $ 3,116.7   final cost of the inventory

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