West Retail Uses the Retail Method of Inventory Valued at Average

Multiple Choice

West Retail uses the retail method of inventory valued at average cost, lower of cost and market. The following information relates to 2019: $$\begin{array} { | l | r | r | } \hline & \text { Cost (\$) } & \text { Retail (\$) } \\\hline \text { Beginning inventory, January 1, 2019 } & \$ 700 & \$ 1,000 \\\hline \text { Sales revenue } & & 4,300 \\\hline \text { Purchases } & 2,940 & 4,000 \\\hline \text { Net mark-downs } & & 100 \\\hline \text { Net mark-ups } & & 200 \\\hline\end{array}$$ What is the retail value of the 2019 ending inventory?

A) $560
B) $700
C) $800
D) $1,000