The Alice Company Uses the Retail Inventory Method and the Average

question 72

Multiple Choice

The Alice Company uses the retail inventory method and the average cost flow assumption for preparation of its interim reports.Information about Alice's inventory in the second quarter of 2010 is shown below: $\begin{array}{lll}&\text { Cost }&\text { Retail }\\\text { Beginting inventory } & \$ 255 & \$ 800 \\\text { Purchases } & 600 & 1,400 \\\text { Net markips } & & 200 \\\text { Net markdowns } & & (500) \\\text { Sales } & & 1,300\end{array}$ What is the estimated cost of Alice's inventory on June 30, 2010?

• A)$270
• B)$300
• C)$585
• D)$600

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