Company made total purchases of $ 250 comma 000 in the most current year. it paid freight in of $ 4 comma 000 on its purchases. freight out, the cost to deliver the merchandise when it was sold to trift's customers, totaled $ 7 comma 200. of the total purchases trift made during the period, it returned $ 24 comma 000 of the merchandise. trift took advantage of $ 2 comma 500 of purchase discounts offered by its vendors. what was trift's cost of inventory?

$ 227,500

Explanation:

given,                                          

total purchase in current year =  $ 250,000

Paid freight = $ 4,000                    

cost to deliver = $7,200                      

returned made = $ 24,000                          

Trift took advantage = $ 2,500                            

inventory = ?                                                          

inventory cost = purchases + freight inward - return stock - discount

                         = $ 250,000 + $ 4,000 - $ 24,000 - $ 2,500

                         = $ 227,500

the Trift's cost of inventory is equal to  $ 227,500

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