Dig, Inc Had the Following Merchandise Transactions in October What Is the Total Cost of Merchandise Purchased for Dig

question 36

Multiple Choice

Dig, Inc. had the following merchandise transactions in October: $\begin{array}{|l|l|}\hline\$ 50,000 & \text { Purchases } \\\hline \$ 4,000 & \text { Purchase retuns } \\\hline \$ 1,000 & \text { Purchase discounts } \\\hline\$ 2,000 & \text { Transportation in } \\\hline & \\\hline\end{array}$
What is the total cost of merchandise purchased for Dig, Inc.?

• A) $50,000
• B) $47,000
• C) $52,000
• D) $48,000

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Definitions:

Remuneration Expense

The total cost incurred by a company to compensate its employees, including wages, salaries, and benefits.

Exercise Price

The specified price at which an option's underlying security can be bought (call option) or sold (put option) by the option holder.

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.