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Leokris [45]
4 years ago
5

Walberg Associates, antique dealers, purchased goods for $38,100. Terms of the purchase were FOB shipping point, and the cost of

transporting the goods to Walberg Associates's warehouse was $1,500. Walberg Associates insured the shipment at a cost of $210. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $550. Determine the cost of inventory.
Business
1 answer:
blagie [28]4 years ago
7 0

Answer:

$40,360

Explanation:

Data provided

Inventory price = $38,100

Transportation cost = $1,500

Shipment insurance = $210

Cleaning and refurbishing = $550

According to the situation the computation of total cost of inventory is shown below:-

Total cost of inventory = Inventory price + Transportation cost + Shipment insurance + Cleaning and refurbishing

= $38,100 + $1,500 + $210 + $550

= $40,360

Therefore for computing the total cost of inventory we simply applied the above formula.

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