Question: 1. A car dealer acquires a used car for $3,000, terms FOB shipping point. Additional costs in obtaining and offering the car for sale include $150 for transportation-in, $200 for import duties, $50 for insurance during shipment, $25 for advertising, and $250 for sales staff salaries. For computing inventory, what cost is assigned to the used car?
2. When preparing interim financial statements, what two methods can companies utilize to estimate cost of goods sold and ending inventory?