QS $4-2($Static$)$ Identifying inventory costs LO C$1$

Costs of $$5,000$ were incurred to acquire goods and make them ready for sale. The goods were shipped to the buyer $($FOB shipping point$)$ for a cost

of $$200.$ Additional necessary costs of $$400$ were incurred to acquire the goods. No other incentives or discounts were available. Compute the buyer's

total cost of merchandise inventory.

Multiple Choice

$$5,400$

$$5,000$

$$5,200$

$$5,600$