* This answer does not add freight-in, and it does not subtract purchase returns. Freight-in is an inventoriable cost because the goods must be received before they can be prepared for sale. Total purchases include purchase returns. Thus, purchase returns must be deducted because they are goods that ultimately have not been purchased. The following information applied to Fenn, Inc. for 2005: Merchandise purchased for resale $400,000 Freight-in 10,000 Freight-out 5,000 Purchase returns 2,000 Fenn's 2005 inventoriable cost was $400,000 O $413,000 $403,000 $408.000