Garden World Uses the Retail Method to Estimate Its Monthly

question 113

Multiple Choice

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

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

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Definitions:

Loss

The financial result when a company's expenses exceed its revenues during a specific period, leading to a negative net income.

Janitorial Expense

Costs associated with cleaning and maintaining a company's premises, typically categorized under operating expenses.

Apportion

To divide, allocate, or distribute proportionately among various accounts, entities, or individuals based on specific criteria.

Number of Employees

The total count of individuals working for a business or organization, either full-time or part-time.