JC Manufacturing purchased inventory for $ 5 comma 500 and also paid a $ 370 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 2% purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)

JC Manufacturing final cost of inventory = $3,334

Explanation:

Inventory costs to JC Manufacturing = $5,500

and a Freight bill of $370 was incurred

Total costs of Goods available for sale = $5,500 + $370 = $5,870

Then JC returned 45% of the Inventory to the seller = 45% x $5,500 = $2,475

This reduces the Costs of goods available for sale to $5,500 - $2,475 + $370 = $3,395

and took a 2% purchase Discount = 2% x $3,025 = 60.5 = $61 (approx.)

This further reduces JC manufacturing Cost of goods available for sale to = $3,395 - $61 = $3,334.

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