American Lumber Has the Following Company Information for October: Goods

Multiple Choice

American Lumber has the following company information for October: goods available for sale at cost are $24,000, retail is $38,400, and sales at retail equal $30,400. Bert has a normal gross profit of 30%. The cost of estimated ending inventory under the gross profit method is: (Round any percentages to two decimal places, X.XX%, and your final answer to the nearest dollar.)

A) $8,000.
B) $14,880.
C) $5,600.
D) $2,720.