A Company Reported the Following Information Regarding Its Inventory

question 169

Multiple Choice

A company reported the following information regarding its inventory. Beginning inventory: cost is $70,000; retail is $130,000
Net purchases: cost is $65,000; retail is $120,000
Sales at retail: $145,000
The year-end inventory showed $105,000 worth of merchandise available at retail prices. What is the cost of the ending inventory?

• A) $48,300.
• B) $56,700.
• C) $56,441.
• D) $78,300.
• E) $105,000.

---

Definitions:

Repression

In psychodynamic theory, the automatic (unconscious) ejection of anxiety-evoking ideas, impulses, or images from awareness.

Impulses

Sudden, involuntary urges to act, driven by internal or external stimuli.

Defense Mechanism

Unconscious tactics employed to shield oneself from the anxiety caused by thoughts or feelings deemed unacceptable.

Psychic Energy

In psychoanalytic theory, a form of energy that drives all human behavior, originating from innate biological instincts.