Cloverdale, Inc. uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations:
(cost, retail)
beginning inventory: (313,500; 540,000)
net markups: (0; 30,000)
net markdowns: (0; 20,000)
net sales: (0; 480,000)
What amount should be reported as cost of goods sold for the year?
A. $273,600.
B. $272,861.
C. $275,000.
D. None of the above.
Answer: C. $275,000.
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