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    Invoice/shipping terms FOB

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    Invoice price of goods is $3,500. Purchase terms are 3/10, n/30, and the invoice is paid in the week of receipt. The shipping terms are FOB shipping point, and the shipping costs amount to $330. What is the total cost of inventory?

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    Solution Preview

    Here is how you calculate this:

    Your goods cost is $3500.
    You ...

    Solution Summary

    This solution explains how to figure out total cost of inventory based upon purchase terms.