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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. What is the buyer's total cost of merchandise inventory?a. $5,000.b. $5,200.c. $5,400. d. $5,600.

Respuesta :

Answer:

d. $5,600

Explanation:

The computation of the total cost of merchandise inventory is shown below:

Cost of goods purchased $5,000

Add: Shipping charges (FOB point) $200

Additional necessary costs to purchase the goods $400

Buyer’s total cost of merchandise inventory $5,600

Hence, the total cost of merchandise inventory is $5,600

Therefore the option d is correct

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