Inventory Costs Marymount Company purchased inventory for $132,000 on April 1, 2000. The seller paid freight charges of $7,500 and sent Marymount Corporation a bill for $139,500. The terms of payment allowed a 12 percent quantity discount on the cost of the inventory (excluding freight). Marymount paid for the inventory on May 10, 2000, and treated the discount as a reduction of its inventory cost.

On June 15, Marymount sold 50 percent of the inventory for

$86,500 cash.

a. Compute the carrying value of the inventory on May 10, 2000.

b. Compute Marymount’s June 15 cost of goods sold.