The following information was reported by Belleville Inc. for 2020: $\begin{array}{ll}
\text { Merchandise purchased for resale } & \$ 25,000 \
\text { Freight-in } & 1,750 \
\text { Freight-out } & 1,000 \
\text { Purchase returns } & 500
\end{array}$
Based on this data, Belleville's 2020 inventoriable cost was

Question

The following information was reported by Belleville Inc. for 2020: $\begin{array}{ll}
\text { Merchandise purchased for resale } & \$ 25,000 \
\text { Freight-in } & 1,750 \
\text { Freight-out } & 1,000 \
\text { Purchase returns } & 500
\end{array}$
 Based on this data, Belleville's 2020 inventoriable cost was

Quizplus · Accepted Answer

Inventoriable cost includes merchandise purchased for resale plus freight-in, minus purchase returns. Therefore, $25,000 + $1,750 - $500 = $26,250. Freight-out is not included in inventoriable costs.

The Following Information Was Reported by Belleville Inc Based on This Data, Belleville's 2020 Inventoriable Cost Was A)

The Following Information Was Reported by Belleville Inc Based on This Data, Belleville's 2020 Inventoriable Cost Was
A)