The Following Information Relates to a Firm with Several Similar

question 162

Multiple Choice

The following information relates to a firm with several similar products: $$\begin{array} { | l | r| r| } \hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning inventory } & \$ 29,000 & \$ 45,000 \\\hline \text { Purchases } & 140,000 & 190,000 \\\hline \text { Purchases discounts taken } & 3,000 & \\\hline \text { Purchases returns } & 5,000 & 8,000 \\\hline \text { Freight-in } & 20,000 & \\\hline \text { Net mark-ups } & & 40,000 \\\hline \text { Net markdowns } & & 12,000 \\\hline \text { Sales } & & 190,000 \\\hline \text { Employee discounts } & & 3,000 \\\hline\end{array}$$ Using the retail inventory method and the average cost flow assumption (not LCM) ,what is ending inventory? When performing your calculations,round your cost ratios to one decimal point.

• A)$44,888
• B)$44,020
• C)$42,036
• D)$41,614

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Definitions:

Green Light

A signal to proceed or an indication that a proposed action is acceptable or safe.

Fixed-interval Schedule

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

40-hour Work Week

The standard full-time working hours agreement, typically spread across five days of the week.

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Receiving money or other forms of compensation in exchange for goods provided or services rendered.