A Company Reports the Following Information Regarding Its Inventory

Multiple Choice

A company reports the following information regarding its inventory. Beginning inventory: cost is $80,000; retail is $130,000 Net purchases: cost is $65,000; retail is $120,000
Sales at retail: $145,000
The year-end inventory shows $135,000 worth of merchandise available at retail prices. What is the cost of the ending inventory calculated using the retail inventory method?

A) $78,300.
B) $73,125.
C) $135,000.
D) $72,900.
E) $105,000.