Professional Documents
Culture Documents
20,000
30,000
40,000
c) P1,070,000
d) P1.090,000
Answer: A
Under FOB Destination terms of shipment, all costs incurred in transporting the
goods to the buyers place shall be borne by the seller. Hence, only the invoice price
of P1,000,000 shall be paid by the buyer which shall be the basis of the inventory
cost.