Weber Company has the following account balances: Purchases $ 28,000 Sales Retur

Question

Weber Company has the following account balances:

                    Purchases                                                                                        $ 28,000

                    Sales Returns and Allowances                                              4,000

                    Purchase Discounts                                                                 2,500                                        

                    Freight-in                                                                                   1,875

The cost of goods purchased for the period is

a. $30,500

b. $27,375                                                                                                                                                                                                        

c. $29,875

d. $25,875

Explanation / Answer

Hi,

Please find the answer as follows:

Cost of Goods Purchased Includs Freight In Costs Therefore cost of goods purchased would be:

= 28000 + 1875 - 2500 = 27375

Answer is Option B (27375)

Thanks.

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