Reference no: EM133011328

Question - A commercialization company of household appliances acquired 2500 TVs for sale. The purchase price of each television is $850, including 16% VAT on account. The entity must additionally pay $13,000 corresponding to tariffs. The entity had to transport the inventory from the port to its warehouse, for which it incurred an expense of $ 9 for each unit of merchandise. Company then paid an additional $ 5 for each unit, corresponding to loading and unloading the merchandise. You mush to determine the cost of the inventory and record the event in its accounting.

An entity that produces goods excluded from VAT acquires raw material worth $70,000, which is taxed with VAT of 16% on cash. The entity had to transport the merchandise from the supplier's facilities to its own, for which it incurred an expense of $ 2,500. You mush to determine the cost of the inventory and record the event in its accounting.