In October, Nicole eliminated all existing Inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a slngle product line, NICole agreed. Nlcole's Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that Included productlon costs and a transportatlon charge. NGS would keep track of its new Inventory using a perpetual Inventory system. On December 31, NGS purchased 20 units at a total cost of $5.30 per unit. Nicole purchased 20 more units at $730 In February. In March Nicole purchased 20 units at $9.30 per unit. In May, 40 units were purchased at $9.10 per unit. In June, NGs sold 40 units at a selling price of $11.30 per unit and 50 units at $11.70 per unit. Value: 0.50 points Required 1. State whether the transportation cost included in each purchase should be recorded as a cost of the inventory or immediately expensed O Cost of the Inventory Immediately Expensed