Johnson Co

question 37

Multiple Choice

Johnson Co. uses the retail inventory method. From the following data what is the estimated ending inventory at cost? Net purchases at cost $33,000, beginning inventory at cost $27,000, beginning inventory at retail $35,000, net purchases at retail $45,000, retail sales $70,000.

• A)$7,500
• B)$30,000
• C)$22,500
• D)$12,500
• E)None of these

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Definitions:

Geothermal Energy

Heat energy generated and stored within the Earth, harnessed by humans for heating and generating electricity with minimal environmental impact.

Molten Rock

Liquid rock material formed under the earth's surface at extremely high temperatures, known as magma, or on the surface as lava from a volcanic eruption.

Methanol

Methanol, also known as methyl alcohol, is a chemical compound used as a solvent, antifreeze, fuel, and as a denaturant for ethanol. It is toxic to ingest.

Ethanol

A biofuel derived from corn, sugarcane, or other plant materials, used as an alternative to gasoline.