Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:

Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:



(cost, retail)
beginning inventory:(112,000; 191,000)
net purchases:(402,000; 703,000)
net markups: (0; 43,000)
net markdowns: (0; 21,000)
net sales: (0; 685,000)
To the nearest thousand, estimated ending inventory using the conventional retail method is:



A. $163,000.
B. $124,000.
C. $127,000.
D. $136,000.


Answer: C. $127,000.


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