Question

Given the following information for a retail company, what is the total cost of goods purchased for the period? Purchases discounts $ 3,500 Transportation-in 6,700 Ending inventory 35,000 Gross merchandise cost 304,000 Purchases returns 8,400 Beginning inventory 27,000 Sales discounts 10,300

Answer 1

Answer: $298,800

Explanation:

Cost of goods purchased = Gross merchandise cost + Transportation-in (Carriage inwards) - Purchase discount - Purchase returns

= 304,000 + 6,700 - 3,500 - 8,400

= $298,800‬