Question

Walberg Associates, antique dealers, purchased the contents of an estate for $38,300. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,600. Walberg Associates insured the shipment at a cost of $230. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $570. Determine the cost of the inventory acquired from the estate.

Answer 1

Answer:

$40,700

Explanation:

We calculate the cost of inventory acquired by adding up the purchase price, and all other costs incurred together. This result of this will give us the inventory to the location of sale and in condition for sale.

Given

Purchase price $38,300

Transport (Freight) $1,600

Insurance during shipment $230

Cleaning $570

Total cost of the inventory acquired = $38,300 + $1,600 + $230 + $570

Total = $40,700