Synzer Co. has incurred the following costs in connection with its purchase of inventory: Purchase price based on vendors' invoices Trade discounts on purchases already deducted from P1,250,000 vendors' invoices 125,000 Salaries of accounting department Brokerage commission paid to agents for arranging imports Sales commission paid to sales agents After – sales warranty costs 150,000 50,000 75,000 62,500 Import duties Freight and insurance on purchases Other handling costs relating to imports 100,000 250,000 25,000 What is the total cost of the purchases?
Synzer Co. has incurred the following costs in connection with its purchase of inventory: Purchase price based on vendors' invoices Trade discounts on purchases already deducted from P1,250,000 vendors' invoices 125,000 Salaries of accounting department Brokerage commission paid to agents for arranging imports Sales commission paid to sales agents After – sales warranty costs 150,000 50,000 75,000 62,500 Import duties Freight and insurance on purchases Other handling costs relating to imports 100,000 250,000 25,000 What is the total cost of the purchases?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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Question
What is the total cost of the purchases?
a. P1,425,000
b. P1,550,000
c. P1,675,000
d. P1,625,000
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