Johnson Co

question 37

Multiple Choice

Johnson Co. uses the retail inventory method. From the following data what is the estimated ending inventory at cost? Net purchases at cost $33,000, beginning inventory at cost $27,000, beginning inventory at retail $35,000, net purchases at retail $45,000, retail sales $70,000.

• A)$7,500
• B)$30,000
• C)$22,500
• D)$12,500
• E)None of these

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Definitions:

Lowest Terms

A fraction in which the numerator and denominator have no common factors other than 1, making it the simplest form of the fraction.

Decimal

A system of numbers based on powers of ten, incorporating a point to separate the integer part from the fractional part of a number.

Lowest Terms

The simplest form of a fraction, where the numerator and the denominator are reduced to their smallest values.

Arabic Numerals

A widely used numerical system that includes the digits 0 through 9, originated in India and later adopted by the Arab world.