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