Ask Experts Questions for FREE Help !
Ask
    meena2601's Avatar
    meena2601 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 8, 2009, 02:22 PM
    Cost of purchase
    What is the formula to findig out the net cost of purchase
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Oct 9, 2009, 11:35 PM

    Depends on what they mean by the "net cost." The entire purchase equation is:

    Purchases
    less Discounts
    less Returns
    Sub-total
    plus Freight In
    Total

    Don't know if they're meaning the sub-total or the total. Personally, I'd think that would be the total, i.e. the entire cost of the purchases that includes freight.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

What cost would be considered a period cost not a product cost. [ 7 Answers ]

Which of the following is a period cost and not a product cost? A.Manufacturing equipment depreciation B.propery taxes on headquarters C.direct material cost E. Sales commissions

Accounting Entries for purchase & sales return and credit purchase & sales with examp [ 10 Answers ]

Accounting Entries for purchase & sales return and credit purchase & sales with examples

Average cost, fifo cost, lifo cost [ 1 Answers ]

In may they began with 67 tents @ $17 and purchases of: 104 tents @ $19 159 tents @ $21 36 tents @ $22 They sold 314 tents and may 31st ending inventory consists of 52 tents. The sales price of each tent was $49. Determine the cost of goods sold and ending inventory for the month of may...

Cost of end. Inv. And cost of goods sold under average cost [ 1 Answers ]

It's me again! I have another question to the same problem. In case someone else responds, I'll post the problem again. June 1 inv20051000 June 12 purch.30061800 June 23 purch. 50073500 June 30 inv. I need to compute the cost of the ending inventory and the cost of goods sold using the...

Closing cost on home purchase [ 2 Answers ]

Hi, my name is skol supunpong and am about to purchase a home in Austin, Tx. The price of the house is $329,000 and I am going to pay by cash. My concern is about the closing cost. My question is that when I purchase the house with cash, do I have to pay this cost or not at all? I would...

View more questions Search