Hawkeye Auto Parts Uses the Retail Method to Estimate Inventories

question 11

Multiple Choice

Hawkeye Auto Parts uses the retail method to estimate inventories. Data for the first six months of 2009 include: beginning inventory at cost and retail were $55,000 and $100,000, net purchases at cost and retail were $785,000 and $1,300,000, and sales during the first six months totaled $800,000. The estimated inventory at June 30, 2009, would be:

• A)$330,000.
• B)$360,000.
• C)$362,300.
• D)None of these is correct.

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Definitions:

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