ABC agricultural enterprise engaged in import and export trade activities. The enterprise imported materials at FOB value USD 50,000 BR 30,000, and 70,000 for insurance, and transport respectively. BUYING SELLING USD 23.5 24 Required Calculate the total cost of materials assuming that the enterprise charged 3% by the bank for services? MOHA Company imports soft drink powder from its parent company in New York that will be used in the manufacturing of soft drink products. The following information’s were taken from the customs declaration. The quantity of soft drink powder imported is 6500 Kg. Total invoice amount (transaction value) is USD 25000. The rate of exchange 1USD = Br 23 Insurance cost = 10000 Br. The Freight charge is Br. 15 per Kg.

For ABC agricultural enterprise:
Total cost of materials = FOB value + Insurance + Transport
Total cost of materials = USD 50,000 + USD 30,000 + USD 70,000
Total cost of materials = USD 150,000

Bank charges = 3% of total cost of materials
Bank charges = 3% * USD 150,000
Bank charges = USD 4,500

Total cost of materials including bank charges = Total cost of materials + Bank charges
Total cost of materials including bank charges = USD 150,000 + USD 4,500
Total cost of materials including bank charges = USD 154,500

Total cost of materials in local currency = Total cost of materials including bank charges * Buying rate
Total cost of materials in local currency = USD 154,500 * Br 23.5
Total cost of materials in local currency = Br 3,629,250

For MOHA Company:
Cost of soft drink powder = Total invoice amount + Insurance + Freight charge
Cost of soft drink powder = USD 25,000 + Br 10,000 + (Br 15 * 6500)
Cost of soft drink powder = USD 25,000 + Br 10,000 + Br 97,500
Cost of soft drink powder = USD 25,000 + Br 107,500

Total cost of soft drink powder in local currency = Cost of soft drink powder * Rate of exchange
Total cost of soft drink powder in local currency = (USD 25,000 + Br 107,500) * Br 23
Total cost of soft drink powder in local currency = Br 3,322,500