S&C, Inc Purchases $2,100 of Inventory with Shipping Terms FOB Olympia

question 97

Multiple Choice

S&C, Inc. purchases $2,100 of inventory with shipping terms FOB Olympia. The supplier is based in Seattle and S&C is based in Olympia. The shipping costs are $300. What is the cost of S&C's inventory?

• A)$2,100
• B)$2,400
• C)Either $2,100 or $2,400 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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Definitions:

Antibiotic

Medications used to combat bacterial infections, working by killing bacteria or inhibiting their growth.

Penicillin

A group of antibiotics derived from Penicillium fungi, used to treat bacterial infections by inhibiting cell wall synthesis.

Cellular Metabolism

The series of chemical reactions that occur within a cell to maintain life, involving the conversion of nutrients into energy, building blocks, and waste products.

ADH

Antidiuretic hormone, a peptide hormone that regulates water reabsorption in the kidneys, contributing to the control of the water balance of the body.