Costs of $6,000 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 $300 Additional necessary costs of $600 were incurred to acquire the goods. No other incentives or discounts were available Compute the buyer's total cost of merchandise inventory.

Costs of $6,000 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 $300 Additional necessary costs of $600 were incurred to acquire the goods. No other incentives or discounts were available Compute the buyer's total cost of merchandise inventory.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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. What is the buyer’s total cost of merchandise inventory? a. $5,000 b. $5,200 c. $5,400 d. $5,600
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 costs of $400 were incurred to acquire the goods. No discounts were taken. What is the buyer's total cost of merchandise inventory?
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