On the Basis of the Following Data, What Is the Estimated

Multiple Choice

On the basis of the following data, what is the estimated cost of the inventory on May 31 using the retail method? $$\begin{array} { l l r r } & & \text { Cost } & \text { Retail } \\\text { May 1 } & \text { Inventory } & \$ 125,000 & \$ 166,667 \\\text { May 1-31 } & \text { Purchases } & 235,000 & 313,333 \\\text { May 1-31 } & \text { Sales } & & 230,000\end{array}$$

A) $250,000
B) $360,000
C) $172,500
D) $187,500