cost of invent value: 3.00 points During the month of June, Ace Incorporated pur
ID: 2395321 • Letter: C
Question
cost of invent value: 3.00 points During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows June 3 Purchased goods for $4,400 from Diamond Inc. with terms 3.0/10, n/30. 5 Returned goods costing $1,250 to Diamond Inc. for full credit 6 Purchased goods from Club Corp. for $1,150 with terms 3.0/10, n/30. 11 Paid the balance owed to Diamond Inc 22 Paid Club Corp. in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places) HintsReferences eBook & Resources Hint#1 F2 F3Explanation / Answer
Answer:
Cost of Inventory = Cost of Goods purchased – Cost of Goods returned – Discount availed
Cost of Goods purchased = Goods Purchased on June 3 + Goods Purchased on June 6
Cost of Goods purchased = $4,400 + $1,150
Cost of Goods purchased = $5,550
Cost of Goods returned = $1,250
Discount availed = $4,400 * 3% = $132
Cost of Inventory = $5,550 - $1,250 - $132
Cost of Inventory = $4,168
Cost of Inventory as of June 30 is $4,168.
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