Answer to Question #241187 in Accounting for samantha

Question

SCI Question 2

SOLVE FOR THE COST OF GOODS SOLD

 

Freight-in = 60% of Purchase Discount

Purchase Discount = 30% of Gross Purchases

Gross Purchases = 3,000,000 pesos

Answer 1

Solution

$Purchase\ discount=0.3\times3000000=900000\\ Freight\ in=0.6\times900000=540000\\ Cost\ of\ goods\ sold=3000000+540000-900000\\ =2640000$