Hard Candy Has a Beginning Inventory of $1,000 with a Retail

question 107

Multiple Choice

Hard Candy has a beginning inventory of $1,000 with a retail value of $1,800.June purchases were $3,000,with a retail value of $4,700 and retail sales were $4,200.Use four decimal places.What is the June 30 estimated ending inventory at cost under the retail method?

• A)$351
• B)$949
• C)$4,161
• D)$1,416.42

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Definitions:

Sales Returns

Refers to the process of products being returned by customers to the seller for a refund or exchange.

Freight-In

The cost associated with transporting goods or materials into a business, which is often added to the cost of inventory.

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by relating the cost of goods sold to retail sales.

Net Sales

The amount of revenue a company generates from its sales activities after deducting any returns, allowances, and discounts.