Garrison Company Uses the Retail Method of Inventory Costing

Multiple Choice

Garrison Company uses the retail method of inventory costing. It started the year with an inventory that had a retail cost of $45,000. During the year, Garrison purchased an inventory with a retail sales value of $300,000. After performing a physical inventory, Garrison calculated the inventory at retail to be $80,000. The markup is 100% of cost. Determine the ending inventory at its estimated cost.​

A) $160,000
B) $80,000
C) $40,000
D) $45,000