A musical group plans to sell T-shirts bearing their logo at an upcoming concert. They find a supplier who charges $2.50 per plain T-shirt. Printing the logo on the shirt requires a set-up charge of $50 for the order plus S0.75 per shirt. The group places an order for 200 T-shirts and pays a shipping fee of $15 upon receipt. What is the total dollar amount that should be debited to the inventory account for the 200 T-shirts?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A musical group plans to sell T-shirts bearing their logo at an upcoming concert. They find a supplier who
charges $2.50 per plain T-shirt. Printing the logo on the shirt requires a set-up charge of $50 for the order
plus $0.75 per shirt. The group places an order for 200 T-shirts and pays a shipping fee of $15 upon receipt.
What is the total dollar amount that should be debited to the inventory account for the 200 T-shirts?
Transcribed Image Text:A musical group plans to sell T-shirts bearing their logo at an upcoming concert. They find a supplier who charges $2.50 per plain T-shirt. Printing the logo on the shirt requires a set-up charge of $50 for the order plus $0.75 per shirt. The group places an order for 200 T-shirts and pays a shipping fee of $15 upon receipt. What is the total dollar amount that should be debited to the inventory account for the 200 T-shirts?
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