Duke Associates, antique dealers, purchased the contents of an estate
for $37,500. Terms of the purchase were FOB shipping point, and the cost
of transporting the goods to Duke Associates’ warehouse was $1,200.
Duke Associates insured the shipment at a cost of $150. Prior to putting
the goods up for sale, they cleaned and refurbished them at a cost of
$490.
Required:
1 Determine the cost of the inventory acquired from the estate.
