Question
25. Groot Trading has incurred the following costs during the current year: Cost of purchases based on vendors' invoices: 5,000,000 Trade discounts on purchases already
25. Groot Trading has incurred the following costs during the current year: Cost of purchases based on vendors' invoices: 5,000,000 Trade discounts on purchases already deducted from vendors' invoices: 500,000 Import duties: 400,000 Freight and insurance on purchases: 1,000,000 Other handling costs relating to imports: 100,000 Salaries of accounting department: 600,000 Brokerage commission paid for importation of purchased goods: 200,000 Sales commission paid to sales agents: 300,000 After-sales warranty costs: 250,000 What is the total cost of the purchases?
6,100,000
6,700,000
5,700,000
6,500,000
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