A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include • $300 for transportation-in. $140 for shipping insurance. • $880 for car import duties. $130 for advertising. $1,000 for sales staff salaries. • $170 for trimming shrubs. ● Cost Expensed as incurred Cost Transportation-in Import duties Insurance during shipment Advertising Sales staff salaries Trimming shrubs Total 0 $ $ Included in Inventory Cost 20,000 300 880 140 130 1,000 170 22,620 $ 0 $

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A car dealer acquires a used car for $20,000, with terms
FOB shipping point. Compute total inventory costs
assigned to the used car if additional costs include
●
• $300 for transportation-in.
$140 for shipping insurance.
• $880 for car import duties.
$130 for advertising.
●
● $1,000 for sales staff salaries.
• $170 for trimming shrubs.
Cost
Expensed as
incurred
Cost
Transportation-in
Import duties
Insurance during shipment
Advertising
Sales staff salaries
Trimming shrubs
Total
$
$
$
Included in
Inventory Cost
0
20,000
300
880
140
130
1,000
170
22,620 $
0
Transcribed Image Text:A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include ● • $300 for transportation-in. $140 for shipping insurance. • $880 for car import duties. $130 for advertising. ● ● $1,000 for sales staff salaries. • $170 for trimming shrubs. Cost Expensed as incurred Cost Transportation-in Import duties Insurance during shipment Advertising Sales staff salaries Trimming shrubs Total $ $ $ Included in Inventory Cost 0 20,000 300 880 140 130 1,000 170 22,620 $ 0
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