A Company Reports the Following Information Regarding Its Inventory

question 16

Multiple Choice

A company reports the following information regarding its inventory. Beginning inventory: cost is $80,000;retail is $130,000
Net purchases: cost is $65,000;retail is $120,000
Sales at retail: $145,000
The year-end inventory shows $135,000 worth of merchandise available at retail prices.What is the cost of the ending inventory calculated using the retail inventory method?

• A)$135,000.
• B)$73,125.
• C)$78,300.
• D)$72,900.
• E)$105,000.

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Definitions:

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