Chocolate Heaven Had the Following Data for November The Cost of the Estimated Inventory on November 30 Under

question 75

Multiple Choice

Chocolate Heaven had the following data for November: $\begin{array} { | l | r | r | } \hline & \text { Cost Price } & \text { Retail Price } \\\hline \text { Beginning inventory } & \$ 8,000 & \$ 13,000 \\\hline \text { Purchases } & 18,000 & 25,000 \\\hline \text { Sales } & & 30,000 \\\hline\end{array}$ The cost of the estimated inventory on November 30 under the retail method is:

• A)$5,440.
• B)$2,560.
• C)$8,160.
• D)$3,840.

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Definitions:

Ending Inventory

Merchandise value set for sale at an accounting period's end.

Safeguarding Inventory

Safeguarding inventory involves implementing security measures and inventory management practices to protect goods from theft, damage, or loss.

Inventory Control

A management system that oversees the ordering, storage, and use of components that a company will use in the production of the items it will sell as well as the finished products the company will sell.

Theft

An act of stealing; specifically, the illegal taking and removing of personal property with intent to deprive the rightful owner of it.