Data Summarizing the Inventory Activity During 2013 for a Merchandising

question 138

Multiple Choice

Data summarizing the inventory activity during 2013 for a merchandising company are (000's) : $\begin{array} { | l | l | l | } \hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning inventory } & \$ 110 & \$ 216 \\\hline \text { Net purchases } & 618 & 880 \\\hline \text { Net mark-ups } & 24 & \\\hline \text { Net markdowns } & ( 80 ) & \\\hline \text { Goods available for sale } & \$ 728 & \$ 1,040 \\\hline \text { Net sales } & ( 880 ) & \\\hline \text { Ending inventory at retail } \$ 160 & \\\hline\end{array}$
The company uses the retail method of valuing inventory, at average, lower-of-cost-or-market. The 2013 inventory valuation is:

• A) $99
• B) $104
• C) $112
• D) $160

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Definitions:

Sales Promotion Technique

A marketing strategy designed to increase sales, encourage trial, or stimulate consumer demand in the short term by offering value beyond the product itself.

Pepperoni Mini Calzones

A small, folded pizza-like dish filled with pepperoni and cheese, typically baked and served as a snack or appetizer.

Easy-to-Prepare

Referring to products that require minimal time, effort, or cooking skills to make ready for consumption.

Point-Of-Purchase

The location or moment at which a transaction occurs, often used in marketing to refer to strategic placements of products or promotions.