Calculate cost of inventory. (LO l)
Celebration Coordinators Corporation began operations on April 1. The following transactions took place in the month of April.
a. Cash purchases of merchandise during April were $300,000.
b. Purchases of merchandise on account during April were $400,000.
c. The cost of freight to deliver the merchandise to Celebration was $25,000; the terms were FOB shipping point. The freight bill was paid in April.
d. Celebration returned $22,0000 merchandise purchased in part a to the supplier for a full refund.
e. The store manager's salary was $3,000 for the month.
Calculate the amount that Celebration Coordinators Corporation should record for the total cost of merchandise inventory purchased in April.