Question

Costs of $12,500 were incurred to acquire goods and make them ready for sale. The goods were shipped to the buyer (FOB shipping point) for a cost of $950. Additional necessary costs of $1,900 were incurred to acquire the goods. No other incentives or discounts were available. What is the buyer’s total cost of merchandise inventory?

Answer 1

Answer:

$15,350

Explanation:

Merchandise inventory can be defined as the cost of goods which is for sale at any given period of time in which the distributor or wholesaler acquire from their suppliers with an intention of selling them.

Costs of goods incurred $12,500

Goods shipped to the buyer $950

Additional costs of goods acquired $1,900

TOTAL $15,350

Therefore the buyer’s total cost of merchandise inventory is $15,350