1. EX.05.02 Inventoriable costs During the first month of operations, ABC Company incurred the following costs in ordering and receiving merchandise for resale. No inventory was sold. List price $100, 200 units purchased Purchasing department salary, $1,000 Volume discount, 10% off list price Supplies used to label goods at retail price, $9.75 Paid freight costs, $56 Interest paid to supplier, $46 Insurance cost while goods were in transit, $32 Long-distance phone charge to place orders, $4.35 Required: Reason For each cost item listed, select whether the cost is to be included or excluded in the cost of the inventory, and the reason for this treatment. Cost Item Included/Excluded a. List price b. Volume discount C. Paid freight cost d. Insurance cost while goods were in transit e. Long-distance phone charges to place orders f. Purchasing department salary g. Supplies used to label goods at retail price h. Interest paid to supplier What amount do you recommend the company record as merchandise inventory on its balance sheet? $