Colonial Uses the Retail Method to Estimate Its Monthly Cost

Multiple Choice

Colonial uses the retail method to estimate its monthly cost of goods sold and month-end inventory.At August 31,the accounting records indicate the cost of goods available for sale during the month (beginning inventory plus purchases) totaled $270,000.These goods had been priced for resale at $675,000.Sales in August totaled $450,000.The estimated inventory at August 31 is:

A) $48,000.
B) $90,000.
C) $120,000.
D) $270,000.