Hasham Purchases Inventory from Overseas and Incurs the Following Costs

Multiple Choice

Hasham purchases inventory from overseas and incurs the following costs: the merchandise cost is $80,000,credit terms 1/10,n/30,applicable only to the $80,000;FOB shipping point freight charges are $2,500;insurance during transit is $300;and import duties are $1,500.Hasham paid within the discount period.Compute the cost that should be assigned to the inventory.

A) $83,500
B) $79,200
C) $81,700
D) $84,300
E) $81,000