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

---

Definitions:

Goal Challenge

The degree of difficulty and the effort required to achieve a specific goal, which can influence motivation and performance.

Extreme

Something that is very far from the average or norm, often in intensity, degree, or severity.

Induce

To cause or bring about a certain action or condition, often through incentives or persuasion.

Unethical Behaviour

Actions or decisions that violate moral or professional principles, often resulting in harm or unfairness.