4. Brilliant Company purchases motorcycles from various countries and exports them to Europe. The entity has incurred the following costs during the current year: Cost of purchases based on vendor's invoices Trade discounts on purchases already 5,000,000 500,000 deducted from vendor's invoices Import duties Freight and insurance on purchases Other handling costs relating to imports Salaries of accounting department Brokerage commission paid to agents for arranging imports Sales commission paid to sales agents After-sales warranty costs Abnormal freight charge for express shipping Interest on inventory loan 400,000 1,000,000 100,000 600,000 200,000 300,000 250,000 12,000 200,000 What is the total cost of the purchase? a. 5,700,000 b. 6,100,000 c. 6,500,000 d. 6,700,000

4. Brilliant Company purchases motorcycles from various countries and exports them to Europe. The entity has incurred the following costs during the current year: Cost of purchases based on vendor's invoices Trade discounts on purchases already 5,000,000 500,000 deducted from vendor's invoices Import duties Freight and insurance on purchases Other handling costs relating to imports Salaries of accounting department Brokerage commission paid to agents for arranging imports Sales commission paid to sales agents After-sales warranty costs Abnormal freight charge for express shipping Interest on inventory loan 400,000 1,000,000 100,000 600,000 200,000 300,000 250,000 12,000 200,000 What is the total cost of the purchase? a. 5,700,000 b. 6,100,000 c. 6,500,000 d. 6,700,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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