Accounting Help! Inventory Costs.?
I'm struggling with this question:
Rivers 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 Rivers Associates' warehouse was $1,800. Rivers Associates insured the shipment at a cost of $300. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $1,750. Determine the cost of the inventory acquired from the estate.
Thank you in advance!
Add up all of your expenses and you have your TOTAL COST of purchase:
75,000 + 1,800 + 300 + 1,750 = $78,850