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 (Volume discount, 10% off list price)

Purchasing department salary, $1,000

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

1.) What amount do you recommend the company record as merchandise inventory on its balance sheet?