Perch X,Inc.purchased goods with an invoice price of $3,000.Purchase terms are 1/10,n/30 and the invoice is paid one week after it was received.The shipping terms are FOB shipping point and the shipping costs are $300.The cost of the inventory purchased equals _______.

Question

Quizplus · Accepted Answer

The cost of inventory purchased includes not only the invoice price but also any additional expenses incurred in acquiring the inventory, such as shipping costs. Since the shipping terms are FOB shipping point, the buyer (Perch X, Inc.) is responsible for the shipping costs. Therefore, the cost of the inventory purchased is:

Invoice price + Shipping costs
= $3,000 + $300
= $3,300

Since the payment is made one week after the invoice was received, the 1/10 discount does not apply. Therefore, the cost of the inventory purchased is $3,300.