Reference no: EM132903359

Synzer Co. has incurred the following costs in connection with its purchase of inventory:

Purchase price based on vendor's invoices ?1,250,000

Trade discounts on purchases already deducted from Vendor's invoices 125,000

Salaries of accounting department 150,000

Brokerage commission paid to agents for arranging imports 50,000

Sales commission paid to sales agents 75,000

After- sales warranty costs 62,500

Import duties 100,000

Freight and insurance on purchases 250,000

Other handling costs relating to imports 25,000

Problem 1: What is the total cost of the purchases?

a. ?1,425,000

b. ?1,550,000

c. ?1,675,000

d. ?1,625,000