Answer:
$3,850.90
Explanation:
The total cost of the merchandise is the cost incurred in getting the merchandise to the location where it becomes available for sale or use in the production process.
It includes the cost of the item, the cost of freight less the returns and discounts.
Cost without discount
= $3,900 + $340 - $270
= $3,970
Discounted amount
= 3% of $3,970
= $119.10
Total cost of this merchandise
= $3,970 - $119.10
= $3,850.90
