Reference no: EM132612982
Question - An entity incurred the following costs during the current year:
Cost of purchases based on invoices 5,000,000
Trade discount already deducted from invoices 500,000
Import duties 400,000
Freight and insurance on purchases 600,000
Other handling costs on imports 100,000
Commission paid to agents for arranging imports 200,000
Sales commission paid to sales agents 300,000
Salaries of accounting department 1,000,000
After sales warranty costs 250,000
Required - What is the total cost of purchases?
a. 6,300,000
b. 5,800,000
c. 6,100,000
d. 6,600,0