West Retail Uses the Retail Method of Inventory Valued at Average

question 2

Multiple Choice

West Retail uses the retail method of inventory valued at average cost, lower of cost and market. The following information relates to 2019: $$\begin{array} { | l | r | r | } \hline & \text { Cost (\$) } & \text { Retail (\$) } \\\hline \text { Beginning inventory, January 1, 2019 } & \$ 700 & \$ 1,000 \\\hline \text { Sales revenue } & & 4,300 \\\hline \text { Purchases } & 2,940 & 4,000 \\\hline \text { Net mark-downs } & & 100 \\\hline \text { Net mark-ups } & & 200 \\\hline\end{array}$$ What is the retail value of the 2019 ending inventory?

• A)$560
• B)$700
• C)$800
• D)$1,000

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