2B5W A REVIEW OF THE INVENTORIES OF CEDAR GROVE COMPANY SHOWS THE FOL...

164.

CSO: 2B5e

LOS: 2B5w

A review of the inventories of Cedar Grove Company shows the following cost data for

entertainment centers.

Invoice price

$400.00 per unit

Freight and insurance on shipment

20.00 per unit

Insurance on inventory

15.00 per unit

Unloading

140.00 per order

Cost of placing orders

10.00 per order

Cost of capital

25%

What are the total carrying costs of inventory for an entertainment center?

a.

$105.

b.

$115.

c.

$120.

d.

$420.