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Palangga Company provided the following information for the current year: Beginning inventory 400 000 Freight in 300,000 Purchase returns 900,000 Ending inventory 500,000 Distribution Cost 1,250,000 Sales discount 250,000 The cost of goods sold is six times the distributions costs. What is the amount of gross purchases? a. 6,500,000 b. 6,700,000 c. 8,000,000 d. 8,200,000

Palangga Company provided the following information for the current year: Beginning inventory 400 000 Freight in 300,000 Purchase returns 900,000 Ending inventory 500,000 Distribution Cost 1,250,000 Sales discount 250,000 The cost of goods sold is six times the distributions costs. What is the amount of gross purchases? a. 6,500,000 b. 6,700,000 c. 8,000,000 d. 8,200,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 4PA: Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering...
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Palangga Company provided the following information for the current year:

Beginning inventory 400 000

Freight in 300,000

Purchase returns 900,000

Ending inventory 500,000

Distribution Cost 1,250,000

Sales discount 250,000

The cost of goods sold is six times the distributions costs.

What is the amount of gross purchases?

a. 6,500,000

b. 6,700,000

c. 8,000,000

d. 8,200,000

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