A retailer incurred the following costs related to a purchase of inventory: • • Base purchase cost: $12,400 Freight charges (FOB shipping point): $780 Additional acquisition costs: $1,350 Insurance during transit: $470 What is the total cost of merchandise inventory for the buyer?

A retailer incurred the following costs related to a purchase of inventory: • • Base purchase cost: $12,400 Freight charges (FOB shipping point): $780 Additional acquisition costs: $1,350 Insurance during transit: $470 What is the total cost of merchandise inventory for the buyer?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 6E: Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was...

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Question

General accounting question

A retailer incurred the following costs related to a
purchase of inventory:
•
•
Base purchase cost: $12,400
Freight charges (FOB shipping point): $780
Additional acquisition costs: $1,350
Insurance during transit: $470
What is the total cost of merchandise inventory for the
buyer?

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