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Question - Freight-In and Purchase Discounts - MNO Company regularly buys merchandise from Devilla Supplier and is allowed a trade discount of 20i10i10 from the list price. For the month of April 2021, the company purchased materials A and B with a list price of 200,000.00 and 100.000.00, respectively with terms 2/10, n/30 applicable to both materials. On top of the said price, freight charges on this 90-pound shipment is 4.500.00. The weight of material A is twice the weight of material B. Freight is allocated using the relative weight method.
1. Compute the total credit to purchase discount if it is recorded and recognized only when taken.
2. Compute the total credit to purchase discount using the net method.
3. Compute the total cost of materiel A if discount is taken.
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