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 Expensed as Inventory Cost incurred
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 Expensed as Inventory Cost incurred
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...
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