What unit cost must be entered on the stock card

Reference no: EM132693477

Problem 1: Arko Manufacturing Co. purchased 10,500 lbs. of materials XY at P2 per lb. and incurred freight cost of P1,050. A cash discount of 2% is granted on payments within ten days. Freight in is treated as additional cost of materials purchased. What unit cost must be entered on the stock card for material XY assuming that the allowance method is used in accounting for discounts?

Option 1: P2.06

Option 2: P1.96

Option 3: P2.00

Option 4: P2.058

Reference no: EM132693477

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