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A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $100 for transportation-in. $170 for shipping
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A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $100 for transportation-in. $170 for shipping insurance. $800 for car import duties. $140 for advertising. $1,400 for sales staff salaries. $150 for trimming shrubs.

User Tchelidze
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3.7k points

1 Answer

8 votes

Answer:

$13,070

Explanation:

The Cost of inventory = all cost of purchase; including costs of conversion and transfer.

Calculation of Inventory Cost FOB ship.

Cost of Purchase $12,000

Transportation-in $100

Shipping insurance $170

Car import duties $800

Total Cost $13,070

User Wiram Rathod
by
3.0k points
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