A Company Reported the Following Information Regarding Its Inventory

Multiple Choice

A company reported the following information regarding its inventory. Beginning inventory: cost is $70,000; retail is $130,000
Net purchases: cost is $65,000; retail is $120,000
Sales at retail: $145,000
The year-end inventory showed $105,000 worth of merchandise available at retail prices. What is the cost of the ending inventory?

A) $48,300.
B) $56,700.
C) $56,441.
D) $78,300.
E) $105,000.