I need help solving this ### Calculation of Total Inventory Cost for a Used CarWhen a car dealer acquires a used car for $15,000 with terms Free On Board (FOB) shipping point, additional costs incurred need to be computed to determine the total inventory cost assigned to the used car. Below are the costs that need to be accounted for:- **$150** for transportation-in- **$190** for shipping insurance- **$730** for car import duties- **$200** for advertising- **$1,500** for sales staff salaries- **$200** for trimming shrubs### Breakdown of Costs:The table below details the classification of these costs as either inventory costs or expenses as incurred.| Cost Description | Cost | Included in Inventory Cost | Expensed as Incurred ||-----------------------|-------|----------------------------|----------------------|| Purchase Cost | $15,000 | ✔ | || Transportation-in | $150 | ✔ | || Import Duties | $730 | ✔ | || Insurance during shipment | $190 | ✔ | || Advertising | $200 | | ✔ || Sales Staff Salaries | $1,500 | | ✔ || Trimming Shrubs | $200 | | ✔ || **Total** | **$17,970** | | |### Explanation:1. **Included in Inventory Cost**: - **Purchase Cost**: The initial cost of acquiring the car. - **Transportation-in**: Costs involved in bringing the car to the dealer. - **Import Duties**: Taxes or fees paid for importing the car. - **Insurance during Shipment**: Costs to insure the car while it is being transported.2. **Expensed as Incurred**: - **Advertising**: Costs associated with promoting the vehicle. - **Sales Staff Salaries**: Wages paid to staff who sell the car. - **Trimming Shrubs**: Miscellaneous landscaping or aesthetic expenses.### Graph/Diagram Explanation:In this case, there is no graph or diagram to explain. The provided table classifies costs along with their inclusion in inventory or their expensing as incurred.This detailed breakdown helps in understanding the proper accounting treatment for various costs associated with acquiring and preparing the used car for sale, ensuring

The cost related to inventory are categorised in two ways - one as to include in the cost of…

A car dealer acquires a used car for $15,000, with terms FOB shipping point. Compute total inventory cots assigned to the used car if additional costs include • $150 for transportation-in. $190 for shipping insurance. $730 for car import duties. • $200 for advertising. $1,500 for sales staff salaries. • $200 for trimming shrubs. Included in Expensed Cost Inventory Cost as incurred Cost $ 15,000 Transportation-in Import duties Insurance during shipment Advertising 150 730 190 200 Sales staff salaries 1,500 Trimming shrubs 200 Total $ 17,970 || | |