question archive Entity A acquires inventories and incurs the following costs: Purchase price, gross of trade discount, P100,000 Trade discount, P20,000 Non-refundable purchase tax, not included in the purchase price above, P5,000 Freight In (Transportation costs), P15,000 Commission to broker, P2,000 Advertisement costs, 10,000 How much is the cost of the inventories purchased? P100,000 P102,000 P122,000 P97,000
Entity A acquires inventories and incurs the following costs: Purchase price, gross of trade discount, P100,000 Trade discount, P20,000 Non-refundable purchase tax, not included in the purchase price above, P5,000 Freight In (Transportation costs), P15,000 Commission to broker, P2,000 Advertisement costs, 10,000 How much is the cost of the inventories purchased? P100,000 P102,000 P122,000 P97,000
Subject:AccountingPrice:3.87 Bought7
Entity A acquires inventories and incurs the following costs:
Purchase price, gross of trade discount, P100,000
Trade discount, P20,000
Non-refundable purchase tax, not included in the purchase price above, P5,000
Freight In (Transportation costs), P15,000
Commission to broker, P2,000
Advertisement costs, 10,000
How much is the cost of the inventories purchased?
- P100,000
- P102,000
- P122,000
- P97,000
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Answer:
Cost of the inventories purchased = P102,000
Step-by-step explanation
Cost of the inventories purchased = Purchase price - Trade discount + non refundable tax + freight in + Commission to broker
= 100,000 - 20,000 + 5,000 + 15,000 + 2,000
= 102,000
