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:

Differing Spheres

The concept of having separate areas or aspects of life, work, or society that have different roles, norms, or expectations.

Overt Power

The visible, explicit, and acknowledged capacity to influence others or the outcome of events.

Coercive Power

The ability to influence others' behavior through threats, punishment, or sanctions.

Employees' Participation

The involvement of employees in making decisions that affect their work and the organization.