At the Beginning of 2016, the Joan Company Had an Inventory

question 47

Multiple Choice

At the beginning of 2016, the Joan Company had an inventory valued at $34,375 at cost $50,000 at retail) . During the year, Joan purchased inventory for $50,000 $70,000 at retail) , and made markdowns of $7,500. Joan's sales in 2016 were $62,500. What is Joan's estimated ending inventory at FIFO cost using the retail inventory method?

• A) $37,500
• B) $40,000
• C) $39,000
• D) $34,375