Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 47

Reporting Purchases and Purchase Discounts Using a Perpetual Inventory System
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:

Required:
Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28.