walberg associates, antique dealers, purchased goods for $38,900. terms of the purchase were fob shipping…

walberg associates, antique dealers, purchased goods for $38,900. terms of the purchase were fob shipping point, and the cost of transporting the goods to walberg associatess warehouse was $1,900. walberg associates insured the shipment at a cost of $290. prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $630. determine the cost of inventory.

walberg associates, antique dealers, purchased goods for $38,900. terms of the purchase were fob shipping point, and the cost of transporting the goods to walberg associatess warehouse was $1,900. walberg associates insured the shipment at a cost of $290. prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $630. determine the cost of inventory.

Answer

Explanation:

Step1: Identify cost - components

The cost of inventory includes the purchase price, cleaning and refurbishing cost, insurance cost, and transportation cost (since FOB shipping point means buyer pays for transportation).

Step2: Sum up the costs

Purchase price = $38,900, cleaning and refurbishing cost = $630, insurance cost = $290, assume transportation cost = $1,900 (warehouse cost which is likely related to getting the goods to the place of storage). Total cost = $38,900 + $630+ $290 + $1,900.

Step3: Calculate the total

$38,900+630 + 290+1,900=41,720$

Answer:

$41,720$