Use the Following Information for the Following Question -The Ending Inventory at Retail Should Be
A) $210,000

question 78

Multiple Choice

Use the following information for the following question:
Tang Inc. uses the retail inventory method. The following information is available for the current year:
$\begin{array}{lll} & \text { Cost } & \text { Retail } \\\text { Beginning inventory } & \$ 117,000 & \$ 183,000 \\\text { Purchases } & 442,000 & 623,000 \\\text { Freight-in } & 8,000 & - \\\text { Employee discounts } & - & 3,000 \\\text { Net markups } & - & 22,000 \\\text { Net markdowns } & - & 30,000 \\\text { Sales } & - & 585,000\end{array}$

-The ending inventory at retail should be

• A) $210,000.
• B) $216,000.
• C) $225,000.
• D) $240,000.

---

Definitions:

Excess Supply

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to a price decrease.

Excess Demand

A situation in which the demand for a product or service surpasses its supply in a market, often leading to price increases.

Market Equilibrium

A situation where the quantity of a good or service supplied equals the quantity demanded at a specific price level.

Excess Demand

A scenario in which the current price of a product or service leads to a demand that surpasses its available supply.