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Toby Co.uses the retail inventory method.The following information is available for the current year.

-The approximate cost of the ending inventory by the conventional retail method is
A)$143,850.
B)$142,380.
C)$147,000.
D)$153,720.

Question

Use the following information for questions 
Toby Co.uses the retail inventory method.The following information is available for the current year.
 
-The approximate cost of the ending inventory by the conventional retail method is
A)$143,850. 
B)$142,380. 
C)$147,000. 
D)$153,720.

Quizplus · Accepted Answer

The conventional retail method estimates ending inventory cost by applying the cost-to-retail percentage to the ending inventory at retail. The choice A is the closest approximation based on typical calculations using this method.

Use the Following Information for Questions