Duke Associates, antique dealers, purchased the contents of an estate for $38,000. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Duke Associates’ warehouse was $1,450. Duke Associates insured the shipment at a cost of $200. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $540. Determine the cost of the inventory acquired from the estate.

Duke Associates, antique dealers, purchased the contents of an estate for $38,000. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Duke Associates’ warehouse was $1,450. Duke Associates insured the shipment at a cost of $200. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $540.

   Determine the cost of the inventory acquired from the estate.


Explanation:

Cost of inventory (estate's contents)

  

Price	$	38,000
Transportation-in		1,450
Insurance on shipment		200
Cleaning and refurbishing		540
Total cost of inventory	$	40,190