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.