West Retail Uses the Retail Method of Inventory Valued at Average

question 148

Multiple Choice

West Retail uses the retail method of inventory valued at average cost,lower of cost and market.The following information relates to 2016:

What is the retail value of the 2016 ending inventory?

• A)$560
• B)$700
• C)$800
• D)$1,000

---

Definitions:

Tax Rates

The percentages at which income, purchases, or other financial transactions are taxed by governments.

Saving

Disposable income not spent for consumer goods; equal to disposable income minus personal consumption expenditures.

Deregulation

The process of reducing or eliminating government power in a particular industry, usually to create more competition within the industry.

Transactional Motive

relates to the need to hold cash for the purpose of conducting day-to-day transactions.