Question

Peterson Manufacturing purchased inventory for $ 4,900 and also paid a $310 freight bill. Peterson Manufacturing returned 35​% of the goods to the seller and later took a 33​% purchase discount. Assume Peterson Manufacturing uses a perpetual inventory system. What is Peterson Manufacturing​'s final cost of the inventory that it​ kept? (Round your answer to the nearest whole​ number.)

Answer 1

Answer:

$2,443.95

Explanation:

Given:

Purchased inventory = $4,900

Freight bill paid = $310

Manufacturing returned = 35%

Purchase discount = 33%

Now,

The value of Purchase returns = 35% of $4,900

= 0.35 × $4,900

= $1,715

Therefore,

The Net purchases = Purchased inventory - Purchase returned

or

= $4,900 - $1,715

= $3,185    

Also,

Discount = 33% of  $3,185

= $1,051.05

Therefore, the final cost of inventory =  Net purchases - Discounts + Freight

= $3185 - $1051.05 + $310

= $2,443.95