Walters Department Store Uses the Retail Inventory Method to Estimate

question 88

Multiple Choice

Walters Department Store uses the retail inventory method to estimate its inventories. It calculated its cost to retail ratio during the period at 70%. Goods available for sale at retail amounted to $300,000 and goods were sold during the period for $160,000. The estimated cost of the ending inventory is

• A) $140,000.
• B) $210,000.
• C) $98,000.
• D) $200,000.

---

Definitions:

Initiative Versus Guilt

A stage in Erikson's psychosocial development theory where children aged roughly 3 to 6 years explore their abilities and learn to initiate tasks, feeling a sense of purpose or, if discouraged, experiencing guilt.

Erikson's Stage

Refers to one of the eight stages of psychosocial development identified by Erik Erikson, which humans progress through from infancy to adulthood.

3-Year-Old

Refers to a child at the age of three, a phase marked by rapid growth in language and social skills.

Water Spills

Accidental releases of water onto surfaces, potentially causing damage or requiring clean-up.