Midwest Office Products Uses the Retail Method to Estimate Ending

question 117

Multiple Choice

Midwest Office Products uses the retail method to estimate ending inventory in its monthly financial statements. The following information is available for the month ended 31 May:
$\begin{array} { | l | l | l | } \hline & \text { Cost } & \text { Retail } \\\hline \text { Sales } & & \$ 300,000 \\\hline \text { Inventory, 1 May } & \$ 137,400 & \$ 198,000 \\\hline \text { Net purchases } & \$ 184,800 & \$ 273,000 \\\hline \text { Goods available for sale } & \$ 322,200 & \$ 471,000 \\\hline\end{array}$
-Estimate the cost of the 31 May inventory using the retail method.

• A) $116,964.
• B) $137,400.
• C) $150,425.
• D) $204,000.

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