QS 6-2 Inventory costs LO C2 A car dealer acquires a used car for $7,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include . $290 for transportation-in. $190 for shipping insurance. $1,000 for car import duties. • $200 for advertising. $1,400 for sales staff salaries. . $190 for trimming shrubs. Cost Transportation-in Import duties Insurance during shipment Advertising Sales staff salaries Trimming shrubs Total $ Cost 7,000 290 1,000 190 200 1,400 190 $ 10,270 Included in Inventory Cost Expensed as incurred
QS 6-2 Inventory costs LO C2 A car dealer acquires a used car for $7,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include . $290 for transportation-in. $190 for shipping insurance. $1,000 for car import duties. • $200 for advertising. $1,400 for sales staff salaries. . $190 for trimming shrubs. Cost Transportation-in Import duties Insurance during shipment Advertising Sales staff salaries Trimming shrubs Total $ Cost 7,000 290 1,000 190 200 1,400 190 $ 10,270 Included in Inventory Cost Expensed as incurred
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QS 6-2 Inventory costs LO C2
A car dealer acquires a used car for $7,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if
additional costs include
. $290 for transportation-in.
. $190 for shipping insurance.
• $1,000 for car import duties.
• $200 for advertising.
$1,400 for sales staff salaries.
.
. $190 for trimming shrubs.
Cost
Transportation-in
Import duties
Insurance during shipment
Advertising
Sales staff salaries
Trimming shrubs
Total
$
$
Cost
7,000
290
1,000
190
200
1,400
190
10,270
Included in
Inventory Cost
Expensed
as incurred
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