Boxer Inc Uses the Conventional Retail Method to Determine Its Ending

question 140

Multiple Choice

Boxer Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $196,500 ($297,000) , purchases during the current year at cost (retail) were $1,704,000 ($2,596,800) , freight-in on these purchases totaled $79,500, sales during the current year totaled $2,333,000, and net markups were $207,000. What is the ending inventory value at cost?

• A) $767,800.
• B) $541,425.
• C) $490,624.
• D) $525,175.

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Definitions:

Prototype

A mock-up of a good, often created individually with the materials the firm expects to use in the final product.

Mock-Up

A full-size model of a design or device, used for product presentations or to evaluate a concept.

Final Product

The completed version of a product after all stages of production and preparation, ready for sale or distribution.

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