Lacy's Linen Mart Uses the Retail Method to Estimate Inventories

Multiple Choice

Lacy's Linen Mart uses the retail method to estimate inventories. Data for the first six months of 2013 include: beginning inventory at cost and retail were $60,000 and $120,000, net purchases at cost and retail were $312,000 and $480,000, and sales during the first six months totaled $490,000. The estimated inventory at June 30, 2013, would be:

A) $68,200.
B) $55,000.
C) $71,500.
D) $63,250.