Question

Walberg Associates, antique dealers, purchased the contents of an estate for $38,600. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,750. Walberg Associates insured the shipment at a cost of $260. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $600. Determine the cost of the inventory acquired from the estate. Cost of inventory (estate's contents) Total cost of inventory

Answer 1

$41,210

Step-by-step explanation:

The computation of the total cost of inventory is shown below:

= Purchase value of estate + transportation in cost + shipment on insurance cost + cleaning and refurbished cost

= $38,600 + $1,750 + $260 + $600

= $41,210

All those costs which are related to the cost of inventory are to be considered. Hence, we take all the costs which are given in the question