Hawkeye Auto Parts uses the retail method to estimate inventories. Data for the first six months of 2013 include: beginning inventory at cost and retail were $55,000 and $100,000, net purchases at cost and retail were $785,000 and $1,300,000, and sales during the first six months totaled $800,000. The estimated inventory at June 30, 2013, would be:
A)$330,000.
B)$360,000.
C)$362,300.
D)None of the above is correct.

Question

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The Answer of Hawkeye Auto Parts uses the retail method to estimate inventories. Data for the first six months of 2013 include: beginning inventory at cost and retail were $55,000 and $100,000, net purchases at cost and retail were $785,000 and $1,300,000, and sales during the first six months totaled $800,000. The estimated inventory at June 30, 2013, would be:
A)$330,000.
B)$360,000.
C)$362,300.
D)None of the above is correct.

Hawkeye Auto Parts Uses the Retail Method to Estimate Inventories