Aubergine Industries Had Beginning Inventory of $10,000 and Purchased $75,000

Multiple Choice

Aubergine Industries had beginning inventory of $10,000 and purchased $75,000 of merchandise during 2020.The company had sales of $90,000 and has traditionally had a cost-to-sales ratio of 75%.Using the gross margin estimation method,the company estimates its ending inventory to be

A) $67,500.
B) $65,000.
C) $17,500.
D) $22,500.