Question
Turquoise, Inc. is trying to decide whether to purchase identical inventory from one of the following suppliers: Supplier A Supplier B Cost $ 200 $
Turquoise, Inc. is trying to decide whether to purchase identical inventory from one of the following suppliers:
| Supplier A | Supplier B | |||||
| Cost | $ | 200 | $ | 220 | ||
| Invoice terms | 1/10, n/30 | 2/10, n/30 | ||||
| Shipping terms | FOB shipping point | FOB destination | ||||
| Shipping cost | $ | 20 | $ | 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 final answers to 2 decimal places.)
Supplier A actual cost?
Supplier B actual cost?
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Measurement And Internal Audit Operations
Authors: Andrew Fight
1st Edition
184112401X, 978-1841124018
