14. Thug Co., a VAT payer, purchased goods and incurred the following: Invoice price (inclusive of P12,000 Value-Added Tax) Shipping costs 112,000 40,000 Transit insurance 12,000 Commissiön to broker Interest incurred on the loan used to finance the purchase 5,600 15,000

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
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What is the right answer in the options?

14. Thug Co., a VAT payer, purchased goods and incurred the
following:
Invoice price (inclusive of P12,000 Value-Added Tax)
Shipping costs
112,000
40,000
12,00
5,600
Transit insurance
Commissiön to broker
Interest incurred on the loan used to finance the purchase
15,000
Transcribed Image Text:14. Thug Co., a VAT payer, purchased goods and incurred the following: Invoice price (inclusive of P12,000 Value-Added Tax) Shipping costs 112,000 40,000 12,00 5,600 Transit insurance Commissiön to broker Interest incurred on the loan used to finance the purchase 15,000
What amount is capitalized as cost of inventory?
b. 172,600
a. 157,600
с. 160,600
d. 152,000
Transcribed Image Text:What amount is capitalized as cost of inventory? b. 172,600 a. 157,600 с. 160,600 d. 152,000
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