Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 26 Sep 2017 My Price 6.00

Flanagan in connection

On December 15, 2006, Flanagan purchased goods costing $100,000. The terms were FOB shipping point. Costs incurred by Flanagan in connection with the purchase and delivery of the goods were as follows:

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Normal freight charges

$3,000

Handling costs

2,000

Insurance on shipment

500

Abnormal freight charges for express shipping

1,200

The goods were received on December 17, 2006. What is the amount that Flanagan should charge to inventory and to current period expense?

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Inventory

Current period expense

a.

$3,000

$3,700

b.

$5,000

$1,700

c.

$5,500

$1,200

d.

$6,700

$0

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Sep 2017 11:09 PM My Price 6.00

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