The Following Information Relates to a Firm with Several Similar

Multiple Choice

The following information relates to a firm with several similar products: $$\begin{array} { | l | r| r| } \hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning inventory } & \$ 29,000 & \$ 45,000 \\\hline \text { Purchases } & 140,000 & 190,000 \\\hline \text { Purchases discounts taken } & 3,000 & \\\hline \text { Purchases returns } & 5,000 & 8,000 \\\hline \text { Freight-in } & 20,000 & \\\hline \text { Net mark-ups } & & 40,000 \\\hline \text { Net markdowns } & & 12,000 \\\hline \text { Sales } & & 190,000 \\\hline \text { Employee discounts } & & 3,000 \\\hline\end{array}$$ Using the retail inventory method and the average cost flow assumption (not LCM) ,what is ending inventory? When performing your calculations,round your cost ratios to one decimal point.

A) $44,888
B) $44,020
C) $42,036
D) $41,614