Good Health,LLP,completed the Following Inventory Transactions During the Month of August

question 53

Essay

Good Health,LLP,completed the following inventory transactions during the month of August:
a.used cash to purchase $620,000 of merchandise
b.purchased $190,000 of merchandise on account
c.paid freight costs of $33,000 on merchandise purchased FOB shipping point
d.returned $12,000 of defective merchandise to the supplier
e.used cash to purchase $210,000 of merchandise
f.paid the purchasing manager's monthly salary of $11,000
g.purchased $45,000 of merchandise on account
h.paid the sales staff's $22,000 salary for the month
i.paid freight costs of $9,000 on merchandise purchased FOB shipping point
j.paid the $17,000 utility bill for the month
Required: Determine the cost of merchandise purchased for the month.

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Definitions:

Input-Process-Output Model

A framework used to understand how groups transform inputs (resources, information, etc.) through processes (communication, decision-making) to produce outputs (solutions, decisions).

Social Exchange Theory

A theory suggesting that human relationships are formed based on a subjective cost-benefit analysis and the comparison of alternatives.

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process to maximize benefits and minimize costs.

Positives and Negatives

The favorable and unfavorable aspects or consequences of a situation or action.