The Ribbon Company Began Operations on May 1

Multiple Choice

The Ribbon Company began operations on May 1.The following transactions took place in May: Purchased $400,000 of merchandise on account.
Purchased an additional $200,000 of merchandise for cash.
Paid $3,000 cash for freight to deliver the merchandise purchased.
Paid $25,000 for the store managers' monthly salaries.
The cost of the inventory purchased for the month of May equals ________.

A) $400,000
B) $600,000
C) $603,000
D) $628,000