Question

A car dealer acquires a used car for $20,000, terms FOB shipping point. Additional costs in obtaining and offering the car for sale include: $120 for transportation-in. $130 for insurance during shipment. $710 for import duties. $140 for advertising. $1,000 for sales staff salaries. For computing inventory, what cost is assigned to the used car

Answer 1

Included in Inventory Cost:

Cost:20,000

Transportation in:120

Import Duties:710

Insurance during shipment:130

Expensed as incurred:

Advertisement:140

Sales Staff salaries:1,000

Step-by-step explanation:

Answer 2

17,900

Step-by-step explanation:

you just add them all together than subtract it from 20k