Boxer IncUses the Conventional Retail Method to Determine Its Ending Inventory

question 60

Multiple Choice

Boxer Inc.uses the conventional retail method to determine its ending inventory at cost.Assume the beginning inventory at cost (retail) were $65,500 ($99,000) , purchases during the current year at cost (retail) were $568,000 ($865,600) , freight-in on these purchases totaled $26,500, sales during the current year totaled $811,000, and net markups were $69,000.What is the ending inventory value at cost?

• A)$222,600.
• B)$174,366.
• C)$142,241.
• D)$152,308.

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Definitions:

Save Money

The practice of reducing expenditures or setting aside funds to increase financial security or for future use.

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the present value of all cash flows associated with a project, including both inflows and outflows, to determine its profitability.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Conglomerate

A large corporation that owns a collection of different companies in various sectors or industries.