A Company Reports the Following Information Regarding Its Inventory

question 16

Multiple Choice

A company reports the following information regarding its inventory. Beginning inventory: cost is $80,000;retail is $130,000
Net purchases: cost is $65,000;retail is $120,000
Sales at retail: $145,000
The year-end inventory shows $135,000 worth of merchandise available at retail prices.What is the cost of the ending inventory calculated using the retail inventory method?

• A)$135,000.
• B)$73,125.
• C)$78,300.
• D)$72,900.
• E)$105,000.

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Definitions:

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, focusing on future aspirations and strategic outcomes.

Frequent Feedback

The process of giving regular, prompt responses or assessments regarding performance, behavior, or learning, aimed at improvement and development.

Goal-Setting Theory

A motivational theory that suggests setting specific and challenging goals, along with appropriate feedback, enhances performance.

Down Payment

An initial, upfront partial payment for the purchase of expensive items such as a home or car, typically representing a percentage of the total purchase price.