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PLEASE HELP!!
John's bikes uses the retail inventory method sales at retail were $120,000. Net purchases were $68,000 at cost and $124,000 at retail. Beginning inventory was $32,000 at cost and $76,000 at retail method, what was the inventory at cost?
A.$24,000
B.$120,000
C.$40,000
D.$60,000

Respuesta :

ellagrace14

Answer:

The answer is C

If you need more explanation let me know and I can explain to you how I got that:)

dgsistemasp0pffb

Answer:

C. $40,000

Step-by-step explanation:

                                                          Cost         Retail      

Beginning Inventory                    $32,000      $76,000

Add: Purchases                             68,000       124,000

Goods available for sale              100,000     200,000

Deduct: Sales                                                   120,000

Ending Inventory at Retail                                 80,000

Ratio of cost (100,000 ÷ 200,000 = 0.5)            50%    

End. Inv. at Cost (80,000 x 50%)                     40,000

Hope this helps!

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