Garden World Uses the Retail Method to Estimate Its Monthly

question 9

Multiple Choice

Garden World uses the retail method to estimate its monthly cost of goods sold and month-end inventory. At 31 May, 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 31 May is:

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

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Definitions:

Internal Nares

The internal nares, also known as the choanae, are openings at the back of the nasal cavity leading into the pharynx, facilitating airflow from the nose to the throat.

Nasal Cavity

The hollow space within the nose through which air flows, filtered, warmed, and humidified, also housing olfactory receptors.

Soft Palate

The soft tissue constituting the back of the roof of the mouth, separating the oral cavity from the nasal passages.

Expiratory Reserve Volume

The additional amount of air that can be forcibly exhaled after the completion of a normal expiration.