PT Makmur Jaya (MJ) imports products from PT Segar Indah (ST). The following are some of the expenditures related to the product: Item Cost Purchase price 500,000 Import duties 25,000 Refundable Value Added Tax 50,000 Transportation insurance 17,500 Freight in 12,500 Freight out 50,000 Further processing cost 100,000 Material waste 60,000 Handling cost 40,000 Purchase discount (5,000) General and administration cost 25,000 Instruction: Determine the value that can be capitalized into inventory