A Company Reports the Following Information Regarding Its Inventory

question 88

Multiple Choice

A company reports the following information regarding its inventory. Beginning inventory: cost is $80,000; retail is $130,000 Net purchases: cost is $65,000; retail is $120,000
Sales at retail: $145,000
The year-end inventory shows $135,000 worth of merchandise available at retail prices. What is the cost of the ending inventory calculated using the retail inventory method?

• A) $78,300.
• B) $73,125.
• C) $135,000.
• D) $72,900.
• E) $105,000.

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Definitions:

Mean

The average of a set of values, calculated by summing them up and dividing by the number of values.

Data Set

A collection of data, often organized in a structured format, that can be analyzed to find patterns, trends, or to answer specific questions.

Extreme Values

The maximum and minimum values in a data set, often of particular interest for identifying outliers.

Bell Shaped

A term often used in statistics to describe the symmetrical, bell-like curve of a normal distribution.