Question

Walberg Associates, antique dealers, purchased the contents of an estate for $37,800. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,350. Walberg Associates insured the shipment at a cost of $180. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $520. Determine the cost of the inventory acquired from the estate. Cost of Inventory (estate's contents) Total cost of inventory

Answer 1

Terms of Purchase FOB Shipping Point. Therefore Costs incurred prior to shipping point is incurred by seller. In this case Cleaning and refurbishment cost will be brone by seller. Cost Of Inventory(Estates Contents) Cost Of Inventory Cost of Transport Cost of Insurance Total cost of Inventory $ $ $ $ 37,800 1,350 180 39,330