Calculate the cost of inventory as of june thirty

Reference no: EM131914860

Problem

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:

June 3 Purchased goods for $4,000 from Diamond Inc. with terms 3.0/12, n/45.
5 Returned goods costing $950 to Diamond Inc. for full credit.
6 Purchased goods from Club Corp. for $900 with terms 2.5/12, n/45.
11 Paid the balance owed to Diamond Inc.
22 Paid Club Corp. in full.

Required:

Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30.

Reference no: EM131914860

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