Respuesta :
Answer:
The total inventory cost assigned to the used car would be 15,450 dollars.
Explantion:
As per accounting standards only directly attributable expenses become parts of inventory cost. In others words selling, admin and distribution cost cannot become part of asset and is recognized as an expense in the period in which they are incured.
SO the total inventory cost includes
Car cost = 14000 dollars
Transportation cost = 250 dollars
Shipping insurance = 300 dollars
Import duties = 900 (it is assume that these duties are non refundable)
Advertisement, sales staff salaries and trimming shrubs cost are recognize as expense in the relevant period.
