On December 26, 2018. Mimosa Company purchased goods costing 1,000,000. The terms were FOB shipping point. The goods were received on December 28,2018. Cost incurred by Mimosa Company in connection with the purchase and delivery of the goods were as follow: Normal freight charge 30,000 Handling Cost 20,000 Insurance on shipment 5,000 Abnormal freight charge for express shipping 12,000 What is the total cost that Mimosa Company should charge to inventory?
On December 26, 2018. Mimosa Company purchased goods costing 1,000,000. The terms were FOB shipping point. The goods were received on December 28,2018. Cost incurred by Mimosa Company in connection with the purchase and delivery of the goods were as follow: Normal freight charge 30,000 Handling Cost 20,000 Insurance on shipment 5,000 Abnormal freight charge for express shipping 12,000 What is the total cost that Mimosa Company should charge to inventory?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- On December 26, 2018. Mimosa Company purchased goods costing 1,000,000. The terms were FOB shipping point. The goods were received on December 28,2018.
Cost incurred by Mimosa Company in connection with the purchase and delivery of the goods were as follow:
Normal freight charge 30,000
Handling Cost 20,000
Insurance on shipment 5,000
Abnormal freight charge for express shipping 12,000
What is the total cost that Mimosa Company should charge to inventory?
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