Lacy's Linen Mart Uses the Average Cost Retail Method to Estimate

question 3

Multiple Choice

Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2018 include: beginning inventory at cost and retail were $60,000 and $120,000, net purchases at cost and retail were $312,000 and $480,000, and sales during the first six months totaled $490,000. The estimated inventory at June 30, 2018, would be:

• A) $68,200.
• B) $55,000.
• C) $71,500.
• D) $63,250.

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Definitions:

Enlightenment Thinking

A philosophical movement of the 18th century, emphasizing reason, individualism, and skepticism towards traditional doctrines.

Stamp Act

A 1765 British law imposing a tax on all paper documents in the American colonies, leading to widespread protest and contributing to the American Revolutionary movement.

Parliamentary Authority

A set of rules that governs how procedures are carried out in a deliberative assembly, especially within a legislature following the parliamentary system.

Indirect Tax

A tax collected by an intermediary (such as a retailer) from the person who bears the ultimate economic burden of the tax (such as the consumer).