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A firm had purchases of $16,300, freight charges of $310, and purchases returns and allowances of $1,150 during one month. Its net delivered cost of purchases was:Multiple Choice$14,840.$15,460.$17,140.$17,760.

Question

A firm had purchases of 16,300,freightchargesof16,300, freight charges of 310, and purchases returns and allowances of 1,150duringonemonth.Itsnetdeliveredcostofpurchaseswas:MultipleChoice1,150 during one month. Its net delivered cost of purchases was:Multiple Choice14,840.15,460.15,460.17,140.$17,760.

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Solution

To calculate the net delivered cost of purchases, you need to follow these steps:

  1. Start with the initial amount of purchases, which is $16,300.
  2. Add the freight charges to this amount. Freight charges are the costs of transporting the goods to the firm, which is 310.So,310. So, 16,300 + 310=310 = 16,610.
  3. Subtract the purchases returns and allowances from this total. These are the amounts of goods that were returned or allowances given by the supplier, which is 1,150.So,1,150. So, 16,610 - 1,150=1,150 = 15,460.

So, the net delivered cost of purchases is $15,460.

This problem has been solved

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