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Leokris [45]
3 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]3 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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3 years ago
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inve
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Answer:

Sept 6.   DR Inventory (80 * 20)                                  1,600  

                    CR Accounts Payable                                             $1,600

Sept 9.    DR Inventory                                                    80

                    CR Cash                                                                   80

Sept 10.  DR Accounts Payable                                     63

                    CR Inventory                                                            63

Sept 12.  DR Accounts Receivable (26 * 31)                806

                     CR Sales Revenue                                                806

               DR Cost of Goods Sold  (21 * 26)                 546

                     CR Inventory                                                         546

Sept 14.    DR Sales Returns and Allowances                 31

                     CR Accounts Receivable                                        31

                 DR Inventory                                                  21

                      CR Cost of Goods Sold                                         21

Sept. 20    DR Accounts Receivable (30 * 32)             960

                        CR Sales Revenue                                              960

                  DR Cost of Goods Sold (30 * 21)               630

                        CR Inventory                                                        630

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