Garden World Uses the Retail Method to Estimate Its Monthly

question 113

Multiple Choice

Garden World uses the retail method to estimate its monthly cost of goods sold and month-end inventory.At May 31,the accounting records indicate the cost of goods available for sale during the month (beginning inventory plus purchases) totaled $540,000.These goods had been priced for resale at $900,000.Sales in May totaled $480,000.The estimated inventory at May 31 is:

• A)$540,000.
• B)$252,000.
• C)$420,000.
• D)$288,000.

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Definitions:

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Agency-by-Necessity

A situation in which one party (the agent) is empowered to act for another party (the principal) under emergency circumstances, without prior authorization.

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The current state of economic systems that are characterized by advanced technology, global trade, and complex financial markets.

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Agreement by all parties or members involved, often used to expedite procedural or formal requirements without formal vote.