Carlton Company purchases $8,000 of inventory with shipping terms, FOB Portland. Carlton is based in...
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Accounting
Carlton Company purchases $8,000 of inventory with shipping terms, FOB Portland. Carlton is based in Seattle and the supplier is based in Portland. The shipping costs are $450. What is the cost of Carlton's inventory?
A.
$8,000
B.
$8,450
C.
Either $8,000 or $8,450 is an acceptable amount to assign to inventory cost under GAAP.
D.
There is not enough information to calculate inventory cost.
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