Problem:
Duke Associates, antique dealers, purchased the contents of an estate for $37,500. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Duke Associates' warehouse was $1,200. Duke Associates insured the shipment at a cost of $150. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $490.
Required:
Question: Determine the cost of the inventory acquired from the estate.
Note: Explain in detail.
|
Cost |
Amount included in inventory
|
| Price |
$37,500 |
|
| Transportation-in |
$1,200 |
|
| Insurance on shipment |
$150 |
|
| Cleaning and refurbishing |
$490 |
|
|
$39,340 |