A car dealer acquires a used car for $17,500, terms FOB shipping point. Additional costs in obtaining and offering the car for sale include $300 for transportation-in, $1,000 for import duties, $250 for insurance during shipment, $400 for advertising, and $3,000 for sales staff salaries. For computing inventory, what cost is assigned to the used car?
Answer to relevant QuestionsPaoli Trading Co. has the following products in its ending inventory. Compute lower of cost or market for inventory (a) As a whole (b) Applied separately to each product. In taking a physical inventory at the end of year 2009, Peña Company erroneously forgot to count certain units. Explain how this error affects the following: (a) 2009 cost of goods sold, (b) 2009 gross profit, (c) 2009 ...Refer to the information in QS 5-5 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on weighted average. (Round per unit costs to three ...Cook Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes. 1. Compute its current ratio, inventory turnover, ...Austin Company began year 2011 with 33,000 units of product in its January 1 inventory costing $17 each. It made successive purchases of its product in year 2011 as follows. The company uses a periodic inventory system. On ...
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