Hasham Purchases Inventory from Overseas and Incurs the Following Costs

question 78

Multiple Choice

Hasham purchases inventory from overseas and incurs the following costs: the merchandise cost is $80,000, credit terms 1/10, n/30, applicable only to the $80,000; FOB shipping point freight charges are $2,500; insurance during transit is $300; and import duties are $1,500. Hasham paid within the discount period. Compute the cost that should be assigned to the inventory.

• A) $83,500
• B) $81,700
• C) $84,300
• D) $79,200
• E) $81,000

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Definitions:

Fur Trade

The buying and selling of animal pelts (especially those of beavers, which were highly valued) primarily carried out by European settlers and Indigenous peoples in North America from the 16th to 19th centuries.

French Involvement

Participation or engagement by France or its citizens in international matters, conflicts, or alliances.

Native Americans

Indigenous peoples of the Americas, including various tribes, nations, and ethnic groups, each with their own distinct cultures, languages, and histories.

Rival Colonies

Settlements or territories established by competing European powers in the New World, often leading to conflict over land, resources, and influence.