QS 4-2 (Static) Identifying inventory costs LO C1
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. Compute the buyer's
total cost of merchandise inventory.
Multiple Choice
$5,400
$5,000
$5,200
$5,600
