During the months of january and february, axe coporation purchased goods from three suppliers. The sequence of events was as follows:

january 6 purchased goods from $1,900 from Green with terms 3/12, n/45.

January 6 purchased good from Munoz for $1,250 with terms 3/12, n/45.

January 14 paid green in full.

February 2 paid Munoz in full.

February 28 purchased goods for $700 from Reynolds with terms n/45.

Required:

Assume that axes uses perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28.

Cost of Inventory: