During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:

During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:

Jan. 6	Purchased goods for $800 from Green with terms 3/12, n/45.
6	Purchased goods from Munoz for $600 with terms 2.5/12, n/45.
14	Paid Green in full.
Feb. 2	Paid Munoz in full.
28	Purchased goods for $100 from Reynolds with terms 2.5/12, n/45.

Required:

Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28.   Purchases ($800 + $600 + $100) $ 1,500        Less: Purchase discount from Green ($800 × 3%) (24 )*   Cost of Inventory as of February 28 $ 1,476 * Green was paid 8 days after the purchase (within the discount period). Munoz was paid 27 days after the purchase (outside the discount period).