Chin Couses the Retail Inventory Method to Estimate Its Inventory for for Interim

question 53

Multiple Choice

Chin Co.uses the retail inventory method to estimate its inventory for interim statement purposes.Data relating to the calculation of the inventory at July 31, 2010, are as follows: Under the lower of average cost and market method, Eaton's estimated inventory at July 31, 2010 is

• A)$170,000
• B)$136,000
• C)$133,000
• D)$119,000

---

Definitions:

Main Crops

Primary agricultural products that are extensively cultivated in a region.

High Inflation

A period of rapidly increasing prices, decreasing the purchasing power of money.

Industrial Capitalists

Individuals or entities investing in industries for production, with the aim of generating profit through ownership of capital goods.

Labor Unions

Organizations formed by workers from related fields to protect their common interests and improve their working conditions through collective bargaining.