Question
Carlton Company purchases $8,000 of inventory with shipping terms, FOB Portland. Carlton is based in Seattle and the supplier is based in Portland. The shipping
Carlton Company purchases $8,000 of inventory with shipping terms, FOB Portland. Carlton is based in Seattle and the supplier is based in Portland. The shipping costs are $450. What is the cost of Carlton's inventory?
| A. | $8,000 |
| B. | $8,450 |
| C. | Either $8,000 or $8,450 is an acceptable amount to assign to inventory cost under GAAP. |
| D. | There is not enough information to calculate inventory cost. |
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Financial Accounting And Reporting
Authors: Mr Barry Elliott, Jamie Elliott
10th Edition
0273703641, 978-0273703648
