73) Describe the function and use of a purchase requisition and a purchase order. 74) Shubart Apparel Company purchased 1,000 shirts from Blue Parrot, FOB shipping point. Each shirt had an invoice...

73) Describe the function and use of a purchase requisition and a purchase order.

74) Shubart Apparel Company purchased 1,000 shirts from Blue Parrot, FOB shipping point. Each shirt had an invoice cost of $18, which includes $1 of tariff paid to import the shirts from Belize. Shubart also paid FedEx $2,000 to have the shirts shipped to its warehouse in Florida, and another $500 to insure the shirts while they were in transit.

Required:

a. Determine the inventory cost that Shubart should record.

b. Explain when the costs described above will become expenses.

75) 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.

76) Montana Company made the following purchases during the month of September:

Required:

1. Complete the chart below for each of the four purchases.

2. Assuming that the selling company accepts all discounts, what is the total cost of purchases for the month?