Exercise 6-36 : from book Cornerstones of Financial and Managerial Accounting 2 edition Question: Diveston Inc., purchased 1,000 bags of insulation from Warmco, Inc. The bags of insulation cost $4.25 each. Diveston paid Giacamini Transporation $264 to have all 1,000 bags of insulation shipped to its warehouse. Diveston returned 50 bags that were defective and paid for the remainder. Assume that Diveston uses the perpetual inventory system and that Warmco, Inc. did not offer a purchase discount. What is the total cost of this purchase?