Homework SourseGrappa Inc reported the following information for 2017 and 2
Grappa, Inc. reported the following information for 2017 and 2016:
How much is the cost of purchases for 2017?
$
| 2017 | 2016 | ||
| Sales | $951,200 | $890,000 | |
| Sales discounts | 12,000 | 23,000 | |
| Purchases | 580,000 | 600,000 | |
| Inventory, December 31 | 46,000 | 40,000 | |
| Transportation-in | 18,000 | 19,000 | |
| Purchase discounts | 4,000 | 5,000 |
Solution
COST OF PURCHASES = PURCHASES + TRANSPORTATION -IN - PURCHASE DISCOUNTS
COST OF PURCHASES = 580000 + 18000 - 4000 =594000
