A company purchased inventory for

$70,000

from a vendor on account, FOB shipping point, with terms of

4/10,

n/30. The company paid the shipper

$1,600

cash for freight in. The company paid the vendor nine days after the invoice date. If there was no beginning inventory, the cost of inventory would be ________. (Assume a perpetual inventory system.)

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Part 1

A.$ 65 comma 600

$65,600

B.$ 71 comma 600

$71,600

C.$ 68 comma 400

$68,400

D.$ 68 comma 800