Given:
A car dealer acquires a used car for $14,000, with terms FOB shipping point.
Transportation cost = $100
Shipping insurance = $120
Car import duties = $970
To find:
The total inventory costs assigned to the used car.
Solution:
We know that,
Inventory costs = Value of used car + Transportation cost + Shipping insurance + Car import duties
Inventory costs = $14,000 + $100 + $120 + $970
Inventory costs = $15,190
Therefore, total inventory costs assigned to the used car is $15,190.
