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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F602d2c85-82ae-412c-9176-67f6704fd9f4%2Fd92b6ae7-245a-4bbd-9c9b-f7446e5de500%2F3unxpje_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
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