Reference no: EM133032622

Problem - Netherlands Company purchases motorcycles from various countries and exports them to Central America. The entity has incurred the following costs during the current year:

Cost of purchases based on vendors' invoices 5,200,000

Trade discounts on purchases already deducted from vendors' invoices 500,000

Import duties 400,000

Freight and insurance on purchases 1,000,000

Other handling costs relating to imports 100,000

Salaries of accounting department 600,000

Brokerage commission paid to agents for arranging imports 200,000

Sales commission paid to sales agents 300,000

After-sales warranty costs 250,000

Required - What is the total cost of the purchases?