The Hill Corporation had the following transactions during the month of April 20

Question

The Hill Corporation had the following transactions during the month of April 20x3. The Hill Corporation uses a perpetual inventory system. April 4 Purchased 4364 units of product AA345 at a total cost of $6 per unit. Terms of purchase were 2/10, n30. April 6 Returned 203 units to the supplier because of defects. April 12 Paid the supplier for the outstanding balance. No sales of the product have been made in April. Hill credits any cash discounts taken to a revenue account called 'Purchase Discounts Taken. What is the value of the inventory of Product AA345 at the end of April?

Explanation / Answer

Particulars Units   Cost per Unit Cost Purchase    4,364                         6 26,184 Returns       203                         6     1,218 Net Cost of Inventory 24,966

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