During the year, a firm purchased $56,970 of merchandise and paid freight charges of $12,680. If the total purchases returns and allowances were $6,495 and purchases discounts were $2,050 for the year, what is the net delivered cost of purchases? Multiple Choice   $72,349   $69,650   $61,105   $35,745

Q: The following information applied to RYXBonus Company for the current year:   Merchandise…

A: Inventoriable cost of the purchase = Merchandise purchased for resale - Purchase returns  + Freight…

Q: During the current year, merchandise is sold for $366, 100 cash and $1,420,000 on account. The cost…

A: Gross Profit is defined as the profit which the company makes after subtracting the costs linked…

Q: Last year, the gross billings for merchandise made by ABC Company amounted to P15,720,000, purchase…

A: Solution: Net Cost of purchase = Purchases - Purchase return and allowances - purchase discount +…

Q: During the current year, merchandise is sold for $53,640 cash and for $82,660 on account. The cost…

A: Gross profit represent the excess amount of revenue over the cost of merchandise sold.

Q: National Co. has just ended the calendar year making a sale in the amount of P250,000 of merchandise…

A: Net Profit = Sales - Cost of inventory purchased                = P 250,000 - P 150,000…

Q: During the current year, merchandise is sold for $95,500 cash and $1,315,000 on account. The cost of…

A: Gross margin (gross profit):Gross margin is the amount of revenue earned from goods sold over the…

Q: The income statement includes the items listed below: Net Sales $900,000 Gross Profit…

A: 1. Cost of Goods Sold =  Net sales- Gross Profit   2. Net Purchase= Purchase-Discount-Returns…

Q: The records of a business show the following information: Sales, P364,000; Purchases, P252,000;…

A: GIVEN: Sales  P364,000 Purchases P252000                                     Freight-in, P11,000…

Q: Assuming that net purchases was P900,000 during the year and that ending merchandise inventory was…

A: Ending inventory = beginning inventory - decrease in inventory = P250000 - P20000 = P230,000

Q: At the beginning of the year, Midtown Athletic had an inventory of P400,000. During the year, the…

A: Cost of goods sold is actual cost of goods that are being sold.  Cost of goods sold = Beginning…

Q: At the beginning of the year, Midtown Athletic had an inventory of P400,00o. During the year, the…

A: Cost of goods sold : Opening inventory + Purchases - closing inventory Therefore COGS :…

Q: The records of a business show the following information: Sales, P364,000; Purchases, P252,000;…

A: Solution 1: Net purchases = Purchases + Freight in - Purchase discount - Purchase returns = P252,000…

Q: e current year, merchandise is sold for $135,100 cash and $501,500 on account. The cost of the goods…

A: Gross profit is the profit which is arrived at by deducting cost of goods sold from Total net sales.…

Q: During the current year, merchandise is sold for $300,000 cash and for $625,000 on account. The cost…

A: The gross profit is calculated by deducting the cost of goods sold from the sales revenues (Cash +…

Q: ational Co. has just ended the calendar year making a sale in the amount of P250,000 of merchandise…

A: Net profit refers to the final sum of money earned or gained by an entity in the desired period for…

Q: During the current year, merchandise is sold for 86,000 cash and 93,950 on account. The cost of the…

A: Sale means when the goods are sold to an outsider . Cost means the amount which is paid by business…

Q: Calexico trading recorded the following events involving a recent purchase of merchandise:…

A: Solution: Net cost of purchase = (Gross purchase  - Purchase returns) * (1-cash discount rate) +…

Q: Sword Co. has just ended the calendar year making a sale in the amount of P250,000 of merchandise…

A: SOLUTION FORMULA = 1-NET PROFIT = SALES - COST . 2- CASH FLOW = COLLECTION AMOUNT RECEIVED - COST…

Q: During the current year, merchandise is sold for $59,180 cash and for $86,380 on account. The cost…

A: Gross Profit is Sales minus Cost of Goods Sold

Q: During the current period, Gleason Technology records total sales of $850,000, with a cost of…

A: Calculate  net sales for the Gleason Technology during the current period:

Q: During the current year, merchandise is sold for $118,700 cash and $454,300 on account. The cost of…

A: Formula: Gross profit = Sales - Cost of goods sold

Q: During the current year, merchandise is sold for $615,000 cash and $4,110,000 on account. The cost…

A: Gross profit can be defined as the excess of net sales revenue over the cost of goods sold. Gross…

Q: Karla Company provided the following information for the current year: Purchases 5,250,000 Purchase…

A: Income Statement is the part of financial statement which shows the net profit or loss earned by the…

Q: The following information is available for Ace Company for 2021:                   Disbursements…

A: COGS termed as Cost of goods sold means the cost which is directly related to the producing goods…

Q: The cost of merchandise sold for Kohl’s Corporation for a recent year was $12,265 million. The…

A: There are various payments made in process of running business. When the merchandise is purchased,…

Q: On January 1, JKR Shop had $225,000 of beginning inventory at cost. In the first quarter of the…

A: FOB shipping point, otherwise called FOB origin, demonstrates that the title and duty of products…

Q: Compute the cost that should be assigned to the inventory.

A: Inventory should be valued at the cost of acquisition including non returnable taxes hplus all…

Q: During the current year, merchandise is sold for $315,800 cash and $1,225,000 on account. The cost…

A: Profit in simple terms is the difference between revenues and cost. It is the gain acquired for…

Q: Hiligaynon Company provided the following information for the current year: Beginning inventory of…

A: Solution Cost of good sold is the cost which a business incur to sales a product.

Q: During the fiscal year 20x4, the initial inventory of the goods of company A is 15.000 €, purchases…

A: Cost of sales = Beginning inventory + Purchases - Closing inventory

Q: Jake's Market recorded the following events involving a recent purchase of merchandise: Received…

A: Formula: Discount amount = Invoice amount x discount rate

Q: is sold for $173,900 cash and $467,700

A: Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of…

Q: What was the amount of Best Buy’s cost of merchandise sold

A: Cost of merchandise sold indicates the costs involved for the inventory sold by the business in a…

Q: Himantayon Company provided the following information for the current year: Beginning inventory…

A: Gross purchase is the sum of the net purchase and purchase return. The net purchase can be…

Q: Karla Company provided the following information for the current year: 5,250,000 150,000 250,000…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: During the current year, merchandise is sold for $237,500 cash and $625,000 on account. The cost of…

A: Gross profit means sales revenue earned over and above cost of goods that are sold to customers.…

Q: During the current year, merchandise is sold for $18,300 cash and $295,700 on account. The cost of…

A: Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of…

Q: During the current year, merchandise is sold for $117,500 cash and $241,750 on account. The cost of…

A: Working Notes: 1. Total Sales of current year = Cash Sales of current year + Credit Sales of current…

Q: During the year, a firm purchased $144,000 of merchandise and paid freight charges of $12,600. If…

A: Ne delivery cost of purchase included the cost of material, other freight costs but exclude purchase…

Q: During the current year, merchandise is sold for $135,800 cash and $406,300 on account. The cost of…

A: Gross profit is considered as the difference between total sale and cost of goods sold.In simple…

Q: Entity A has gross purchases of ₱360,000. Freight paid on the purchases amounted to ₱50,000.…

A: Gross purchases = P 360,000 Freight = P 50,000 Purchase discount = P 20,000 Purchase return = P…

Q: Based on the given information below of FDNACCT Co., how much is the cost of goods available for…

A: Cost of goods available for sale is the amount of goods that an entity has, for the purpose of…

Q: Synzer Co. has incurred the following costs in connection with its purchase of inventory: Purchase…

A: Cost of Purchases includes: Purchase price Insurance during transportation  Handling costs…

Q: What was Good Buy​'s cost of​ inventory?

A: Cost of Inventory = Purchase price + Freight in + Purchase Return + Discount.

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.