Greene Company Purchases $8,000 of Inventory with Shipping Terms, FOB

question 60

Multiple Choice

Greene Company purchases $8,000 of inventory with shipping terms, FOB Columbus. Greene is based in Dayton and the supplier is based in Columbus. The shipping costs are $450. What is the cost of Greene'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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