Yowell Company had the following transactions during March 2016: - Purchased merchandise...

Question:

Yowell Company had the following transactions during March 2016:

- Purchased merchandise inventory of $12,500 from Rochester Company with freight terms FOB destination.

- Freight costs on the Rochester Company purchase were $400.

- Purchased merchandise inventory of $21,500 from Trenton Company with freight terms FOB shipping point.

- Freight costs on the Trenton Company purchase were $600.


What is the total amount Yowell Company recorded to the Merchandise Inventory account as a result of these transactions?

Freight Costs:

Freight costs could either be freight in and freight out. Freight in are considered as inventoriable or capitalizable costs are are treated as part of the inventory while freight out is treated as expense.

Answer and Explanation: 1

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Inventory purchased from Rochester12,500
Inventory purchased from Trenton21,500
Shipping Costs incurred from purchase made from Trenton600
Total Cost...

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Calculating Beginning Inventory: Formula & Explanation

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Chapter 1 / Lesson 7
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Learn the definition of beginning inventory and understand how to calculate it. Find the beginning inventory formula and discover various examples of its usage.


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