Schwendiman's is a home improvement store located throughout Australia and Tasmania. The inventory manager wants you to estimate ending inventory of 2x4 lumber for the quarter using the retail method. He tells you that the cost of inventory is 75 percent of retail prices. Schwendiman's official beginning inventory of 2x4 lumber for the quarter was $250 million. During the quarter, Schwendiman's purchased a total of $100 million in 2x4 lumber. Sales of 2x4 lumber during the period totaled $300 million. What is the best estimate of ending inventory for 2x4s for the current quarter?
A) $50 million
B) $67 million
C) $125 million
D) $167 million
E) None of the above

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The Answer of Schwendiman's is a home improvement store located throughout Australia and Tasmania. The inventory manager wants you to estimate ending inventory of 2x4 lumber for the quarter using the retail method. He tells you that the cost of inventory is 75 percent of retail prices. Schwendiman's official beginning inventory of 2x4 lumber for the quarter was $250 million. During the quarter, Schwendiman's purchased a total of $100 million in 2x4 lumber. Sales of 2x4 lumber during the period totaled $300 million. What is the best estimate of ending inventory for 2x4s for the current quarter?
A) $50 million
B) $67 million
C) $125 million
D) $167 million
E) None of the above

Schwendiman's Is a Home Improvement Store Located Throughout Australia and Tasmania