Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $64,500 and $123,000, net purchases at cost and retail were $315,000 and $483,000, and sales during the first six months totaled $493,000. The estimated inventory at June 30, 2021, would be: Multiple Choice $57,990. $71,190. $74,490. $66,240.
Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $64,500 and $123,000, net purchases at cost and retail were $315,000 and $483,000, and sales during the first six months totaled $493,000. The estimated inventory at June 30, 2021, would be: Multiple Choice $57,990. $71,190. $74,490. $66,240.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 4MC
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![Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of
2021 include: beginning inventory at cost and retail were $64,500 and $123,000, net purchases at cost and
retail were $315,000 and $483,000, and sales during the first six months totaled $493,000. The estimated
inventory at June 30, 2021, would be:
Multiple Choice
$57,990.
$71,190.
$74,490.
$66,240.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b0b81d1-4003-45db-98a1-a693b0b85df5%2F03c2430a-a0dd-4c15-9196-874f592a043f%2Fy5l3hom_processed.png&w=3840&q=75)
Transcribed Image Text:Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of
2021 include: beginning inventory at cost and retail were $64,500 and $123,000, net purchases at cost and
retail were $315,000 and $483,000, and sales during the first six months totaled $493,000. The estimated
inventory at June 30, 2021, would be:
Multiple Choice
$57,990.
$71,190.
$74,490.
$66,240.
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