Identifying inventory cost inclusions. Trembly Department Store commenced operations on January 2. It engaged in the following transactions during January.

Identify the anKumt that the firm should include in the valuation of merchandise inventory.

a. Purchases of merchandise on account during January totaled $300,000.

b. The freight cost to transport merchandise to Trembly"s warehouse was $13,800.

c. The salary of the purchasing manager was $3,000.

d. Depreciation, taxes, insurance, and utilities for the warehouse totaled $27,300.

e. The salary of the warehouse manager was $2,200.

f. The cost of merchandise that Trembly purchased in part a and that was returned to the supplier was $18,500.

g. Cash discounts taken by Trembly from purchases on account in part a totaled

$4,900.

(Appendix)