Question
Garcia Company is trying to decide whether to purchase identical inventory from one of the following suppliers. Supplier A Supplier B Cost $220 $230 Invoice
Garcia Company is trying to decide whether to purchase identical inventory from one of the following suppliers.
Supplier A Supplier B
Cost $220 $230
Invoice terms 1/10, n/30 2/10, n/30
Shipping terms FOB shipping point FOB destination
Shipping cost $22 $24
Required:
Assume the company will pay within the discount period. What is the actual cost of the inventory if purchased from each supplier? (Round your answer to 2 decimal places.)
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Management Accounting
Authors: Pauline Weetman
2nd Edition
0273718452, 978-0273718451
