A car dealer acquires a used car for $11,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $190 for transportation-in. $150 for shipping insurance. $850 for car import duties. $110 for advertising. $2,000 for sales staff salaries. $140 for trimming shrubs. Included in Expensed Cost Inventory Cost as incurred Cost $11,000 Transportation-in 190 Import duties 850 Insurance during shipment 150 Advertising 110 Sales staff salaries 2,000 Trimming shrubs 140 Total $14,440
A car dealer acquires a used car for $11,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $190 for transportation-in. $150 for shipping insurance. $850 for car import duties. $110 for advertising. $2,000 for sales staff salaries. $140 for trimming shrubs. Included in Expensed Cost Inventory Cost as incurred Cost $11,000 Transportation-in 190 Import duties 850 Insurance during shipment 150 Advertising 110 Sales staff salaries 2,000 Trimming shrubs 140 Total $14,440
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 4.6C
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Question
A car dealer acquires a used car for $11,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include
- $190 for transportation-in.
- $150 for shipping insurance.
- $850 for car import duties.
- $110 for advertising.
- $2,000 for sales staff salaries.
- $140 for trimming shrubs.
|
![Included in
Expensed
Inventory
Cost
Cost
as incurred
Cost
11,000
Transportation-in
Import duties
190
850
Insurance during shipment
150
Advertising
110
Sales staff salaries
2,000
Trimming shrubs
140
Total
14,440
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44d84d1f-5997-4168-9e5f-f56ef74728ed%2F898620af-5705-4fe5-a905-249551b2ddc2%2Fl5xn1dq_processed.png&w=3840&q=75)
Transcribed Image Text:Included in
Expensed
Inventory
Cost
Cost
as incurred
Cost
11,000
Transportation-in
Import duties
190
850
Insurance during shipment
150
Advertising
110
Sales staff salaries
2,000
Trimming shrubs
140
Total
14,440
%24
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