Compute the companys total cost of merchandise purchased

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Reference no: EM131805652

Problem

Valley Company's adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

 

Debit

Credit

Merchandise inventory

36,500


Other (noninventory) assets

146,000


Total liabilities


42,158

Common stock


49,133

Retained earnings


71,965

Dividends

8,000


Sales


249,660

Sales discounts

3,820


Sales returns and allowances

16,478


Cost of goods sold

96,761


Sales salaries expense

34,203


Rent expense-Selling space

11,734


Store supplies expense

2,996


Advertising expense

21,221


Office salaries expense

31,208


Rent expense-Office space

2,996


Office supplies expense 

999


Totals

412,916

412,916

On August 31, 2014, merchandise inventory was $29,456. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.

  Invoice cost of merchandise purchases

107,310

  Purchase discounts received

2,254

  Purchase returns and allowances

5,151

  Costs of transportation-in

3,900

Compute the company's total cost of merchandise purchased for the year.

Reference no: EM131805652

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