At the Beginning of 2014, the Joan Company Had an Inventory

question 55

Multiple Choice

At the beginning of 2014, the Joan Company had an inventory valued at $34,375 at cost ($50,000 at retail) . During the year, Joan purchased inventory for $50,000 ($70,000 at retail) , and made markdowns of $7,500. Joan's sales in 2014 were $62,500. What is Joan's estimated ending inventory at FIFO cost using the retail inventory method?

• A) $37,500
• B) $40,000
• C) $39,000
• D) $34,375

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Definitions:

Convergent Evolution

The process where organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.

Monotreme

A mammal that lays eggs instead of giving birth to live young, such as the platypus and echidnas, belonging to the most primitive order of mammals.

Therian

A subgroup of mammals that includes marsupials and placental mammals, distinguished from monotremes.

Morphologically Resemble

To share physical similarities in form and structure with another species or entity.