Chapter 6 Financial Accounting Principles 22nd edition Author John Wild Walberg

Question

Chapter 6 Financial Accounting Principles 22nd edition

Author John Wild

Walberg Associates, antique dealers, purchased the contents of an estate for $75,000. Terms of the purchase were FOB shipping point and the cost of transporting the goods to Walberg Associates' warehouse was $2,400. Walberg associates nsured the shipment at a cost of $300. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $980. Determine the cost of the inventory acquired from the estate.

Explanation / Answer

The cost of the inventory includes the purchase price, and all other costs incurred to get the inventory to the location of sale and in condition for sale.

Purchase price 75,000
Freight 2400
Insurance during transit 300
Cleaning 980
Total cost of the inventory acquired 78,680

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.