Answer:
JC Manufacturing final cost of inventory = $3,334
Explanation:
Inventory costs to JC Manufacturing = $5,500
and a Freight bill of $370 was incurred
Total costs of Goods available for sale = $5,500 + $370 = $5,870
Then JC returned 45% of the Inventory to the seller = 45% x $5,500 = $2,475
This reduces the Costs of goods available for sale to $5,500 - $2,475 + $370 = $3,395
and took a 2% purchase Discount = 2% x $3,025 = 60.5 = $61 (approx.)
This further reduces JC manufacturing Cost of goods available for sale to = $3,395 - $61 = $3,334.
