Avanti Purchases Inventory from Overseas and Incurs the Following Costs

Multiple Choice

Avanti purchases inventory from overseas and incurs the following costs: the merchandise cost is $50,000,credit terms 2/10,n/30 that apply only to the $50,000;FOB shipping point freight charges are $1,500;insurance during transit is $500;and import duties are $1,000.Avanti paid within the discount period and incurred additional costs of $1,200 for advertising and $5,000 for sales commissions.Compute the cost that should be assigned to the inventory.

A) $50,000
B) $53,000
C) $52,000
D) $51,500
E) $53,200