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tamaranim1 [39]
3 years ago
10

A car dealer acquires a used car for $14,000, with terms FOB shipping point. compute total inventory costs assigned to the used

car if additional costs include $100 for transportation-in, $120 for shipping insurance, $970 for car import duties
Mathematics
1 answer:
Artyom0805 [142]3 years ago
4 0

Given:

A car dealer acquires a used car for $14,000, with terms FOB shipping point.

Transportation cost = $100

Shipping insurance = $120

Car import duties = $970

To find:

The total inventory costs assigned to the used car.

Solution:

We know that,

Inventory costs = Value of used car + Transportation cost + Shipping insurance + Car import duties

Inventory costs = $14,000 + $100 + $120 + $970

Inventory costs = $15,190

Therefore, total inventory costs assigned to the used car is $15,190.

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