On December 28, 2006, Kerr Manufacturing Co. purchased goods costing $50,000. The terms were FOB destination. Some of the costs incurred in connection with the sale and delivery of the goods were as follows:
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|
Packaging for shipment |
$1,000 |
|
Shipping |
1,500 |
|
Special handling charges |
2,000 |
These goods were received on December 31, 2006. In Kerr’s December 31, 2006 balance sheet, what amount of cost for these goods should be included in inventory?
- $54,500
- $53,500
- $52,000
- $50,000