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On December 15, 2019 , Flanagan purchased goods costing $100,000. The terms were FOB shippingpoint. Costs incurred by entity in connection with the purchase and delivery of the goods were as follows: Normal freight charges $3,000 Handling costs 2,000 Insurance on shipment 500 Abnormal freight charges for express 1,200 Shipping The goods were received on December 17, 2019 . What is the amount that should be charged to inventory and expense respectively? A. 3,000 and 3,700 B. 5,000 and 1,700 C. 5,500 and 1,200 D. 6,700 and 0

On December 15, 2019 , Flanagan purchased goods costing $100,000. The terms were FOB shippingpoint. Costs incurred by entity in connection with the purchase and delivery of the goods were as follows: Normal freight charges $3,000 Handling costs 2,000 Insurance on shipment 500 Abnormal freight charges for express 1,200 Shipping The goods were received on December 17, 2019 . What is the amount that should be charged to inventory and expense respectively? A. 3,000 and 3,700 B. 5,000 and 1,700 C. 5,500 and 1,200 D. 6,700 and 0

Intermediate Accounting: Reporting And Analysis
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 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...
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4.) On December 15, 2019 , Flanagan purchased goods costing $100,000. The terms were FOB shippingpoint. Costs incurred by entity in connection with the purchase and delivery of the goods were as follows: Normal freight charges $3,000 Handling costs 2,000 Insurance on shipment 500 Abnormal freight charges for express 1,200 Shipping The goods were received on December 17, 2019 . What is the amount that should be charged to inventory and expense respectively? A. 3,000 and 3,700 B. 5,000 and 1,700 C. 5,500 and 1,200 D. 6,700 and 0
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