A car dealer acquires a used car for $14,000, terms FOB shipping point. Additional costs...
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Accounting
A car dealer acquires a used car for $14,000, terms FOB shipping point. Additional costs in obtaining and offering the car for sale include $250 for transportation-in, $900 for import duties, $300 for insurance during shipment, $150 for advertising, and $1,250 for sales staff salaries. For computing inventory, what cost is assigned to the used car?
Included In
Expensed
Cost
Inventory Cost
as incurred
Cost
$14,000
Transportation-in
$250
Import duties
$900
Insurance during shipment
$300
Advertising
$150
Sales staff salaries
$1,250
Total
$16,850
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