A machinery dealer purchases a machine for $20,000. The terms of sale were FOB shipping point. Using the additional cost information below, determine the total inventory costs assigned to the machine. . $120 for transportation-in and delivery insurance. • $710 for import taxes. . . $140 for digital advertising. • $1,000 for sales commissions. • $140 for sales floor cleaning. Cost Transportation-in Import taxes Advertising Sales commissions Sales floor cleaning Total Cost $ Included in Inventory Cost $ 20,000 $ 120 710 140 1,000 140 22,110 $ 20,000 120 710 20,830 Expensed as incurred 69 140 1,000 140 1,280
A machinery dealer purchases a machine for $20,000. The terms of sale were FOB shipping point. Using the additional cost information below, determine the total inventory costs assigned to the machine. . $120 for transportation-in and delivery insurance. • $710 for import taxes. . . $140 for digital advertising. • $1,000 for sales commissions. • $140 for sales floor cleaning. Cost Transportation-in Import taxes Advertising Sales commissions Sales floor cleaning Total Cost $ Included in Inventory Cost $ 20,000 $ 120 710 140 1,000 140 22,110 $ 20,000 120 710 20,830 Expensed as incurred 69 140 1,000 140 1,280
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram
Transcribed Image Text:A machinery dealer purchases a machine for $20,000. The terms of sale were FOB shipping point. Using the additional cost
information below, determine the total inventory costs assigned to the machine.
.
$120 for transportation-in and delivery insurance.
• $710 for import taxes.
.
$140 for digital advertising.
• $1,000 for sales commissions.
• $140 for sales floor cleaning.
Cost
Transportation-in
Import taxes
Advertising
Sales commissions
Sales floor cleaning
Total
Cost
$
Included in
Inventory Cost
$ 20,000 $
120
710
140
1,000
140
22,110 $
20,000
120
710
20,830
Expensed as
incurred
69
140
1,000
140
1,280
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