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    Feb 3, 2012, 11:12 PM
    Accounting question about inventory. Please help.
    The Village Hat Shop Limited counted the entire inventory in its store on August 31 and arrived at a total inventory cost of $66,000. The count included $5,800 of inventory held on consignment for a local designer; $500 of inventory that was being held for customers who were deciding if they actually wanted to purchase the merchandise; and $1,100 of inventory that had been sold to customers but was being held for alterations. There were two shipments of inventory received on September 1. The first shipment cost $6,000. It had been shipped on August 29, terms FOB destination, with freight charges of $260. The second shipment cost $3,750. It had been shipped on August 28, terms FOB shipping point, with freight charges of $150. Neither of these shipments was included in the August 31 count.

    Calculate the correct cost of the inventory on August 31.

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