FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
7th Edition
ISBN: 9781264017478
Author: Wild
Publisher: MCG
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Chapter 5, Problem 2QS
To determine
Free on Board (FOB):
Free on board defines whether a buyer or a seller will be responsible for the ownership of the goods based on the geographical location of the goods and the contract entered there in. There are two types of FOB −FOB shipping and FOB destination.
FOB Shipping:
Under this contract, when the goods are placed at the port for the shipment, the ownership of the goods transfers to the buyer. And now the buyer will incur the expenses (freight expense or the transportation expense) or even the loss if anything happens to the goods, from the point of goods placed for delivery.
Cost of the inventory.
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Students have asked these similar questions
A car dealer acquires a used car for $ 14,000, with term FOB
shipping point. Compute total inventory costs assigned to the
used car if costs include
$ 250 for transportion-in
$ 300 for shipping insurance
$ 900 for care import duties
$ 150 for advertising
$ 1,250 for sales staff salaries
$ 180 for trimming shrubs
Select one:
O a. $ 15,450
O b. $ 14,000
O . $14,900
O d. $ 17030
A car dealer acquires a used car for $17,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if
additional costs include
$200 for transportation-in.
$180 for shipping insurance.
$750 for car import duties.
. $170 for advertising.
$2,000 for sales staff salaries.
$100 for trimming shrubs.
Cost
Included in
Inventory Cost
Expensed as
incurred
Cost
Transportation-in
$
17,000
200
Import duties
750
Insurance during shipment
180
Advertising
170
Sales staff salaries
Trimming shrubs
2.000
100
Total
$
20,400
A car dealer acquires a used car for $20,000, with terms
FOB shipping point. Compute total inventory costs
assigned to the used car if additional costs include
●
• $300 for transportation-in.
$140 for shipping insurance.
• $880 for car import duties.
$130 for advertising.
●
● $1,000 for sales staff salaries.
• $170 for trimming shrubs.
Cost
Expensed as
incurred
Cost
Transportation-in
Import duties
Insurance during shipment
Advertising
Sales staff salaries
Trimming shrubs
Total
$
$
$
Included in
Inventory Cost
0
20,000
300
880
140
130
1,000
170
22,620 $
0
Chapter 5 Solutions
FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
Ch. 5 - Use the following information from Marvel Company...Ch. 5 - Use the following information from marvel company...Ch. 5 - Use the following information from Marvel Company...Ch. 5 - Use the following information from Marvel company...Ch. 5 - Periodic: A company reports the following...Ch. 5 - Prob. 6MCQCh. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQ
Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Prob. 10DQCh. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Prob. 4QSCh. 5 - Prob. 5QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Prob. 12QSCh. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Prob. 18QSCh. 5 - Prob. 19QSCh. 5 - Prob. 20QSCh. 5 - Prob. 21QSCh. 5 - Prob. 22QSCh. 5 - Prob. 23QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Perpetual: Alternative cost flows P1 Warnerwoods...Ch. 5 - Periodic: Alternative cost flows P3 Refer to the...Ch. 5 - Perpetual: Alternative cost flows P1 Montoure...Ch. 5 - Prob. 4PSACh. 5 - Prob. 5PSACh. 5 - Analysis of inventory errors A2 Navajo Company’s...Ch. 5 - Prob. 7PSACh. 5 - Periodic: Income comparisons and cost flows A1P3...Ch. 5 - Prob. 9PSACh. 5 - Prob. 10PSACh. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Prob. 4PSBCh. 5 - Lower of cost or market P2 A physical inventory of...Ch. 5 - Analysis of inventory errors A2 Hallam Company’s...Ch. 5 - Prob. 7PSBCh. 5 - Periodic: Income comparisons and cost flows A1P3...Ch. 5 - Prob. 9PSBCh. 5 - Prob. 10PSBCh. 5 - Prob. 5SPCh. 5 - Prob. 1AACh. 5 - Prob. 2AACh. 5 - Prob. 3AACh. 5 - Prob. 1BTNCh. 5 - Prob. 2BTNCh. 5 - Prob. 3BTNCh. 5 - Prob. 4BTNCh. 5 - Prob. 5BTNCh. 5 - Visit four retail stores with another classmate....
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