StPaul Corporation Had a Beginning Inventory of $2,500 Which Would

question 115

Multiple Choice

St.Paul Corporation had a beginning inventory of $2,500 which would retail for $4,000.They made $9,000 in purchases which would retail at $14,400.The sales for the period were $15,000.What is the estimated cost of ending inventory under the retail inventory method?

• A)$1,500
• B)$3,400
• C)$4,000
• D)$2,125

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Definitions:

Ethical Organization

An entity that prioritizes ethical values in its decisions, policies, and interactions with stakeholders.

Planned Obsolescence

A strategy where products are designed to have a limited useful life or become outdated quickly, encouraging consumers to purchase newer models.

Enterprise Resource-Planning System

Integrated software applications designed to manage a company’s resources, processes, and information across all functional departments.

Just-In-Time System

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, aiming to have the exact amount of material, at the right time, and the right place.