Gooch Corporation had the following amounts, all at retail: $$\begin{array} { l r l r }
\text { Beginning inventory } & \$ 3,600 & \text { Purchases } & \$ 120,000 \
\text { Purchase returns } & 6,000 & \text { Net markups } & 18,000 \
\text { Abnormal shortage } & 4,000 & \text { Net markdowns } & 2,800 \
\text { Sales } & 72,000 & \text { Sales returns } & 1,800 \
\text { Employee discounts } & 1,600 & \text { Normal shortage } & 2,600
\end{array}$$ What is Gooch's ending inventory at retail?
A)$54,400.
B)$56,000.
C)$57,600.
D)$58,400

Question

Gooch Corporation had the following amounts, all at retail: $$\begin{array} { l r l r } 
\text { Beginning inventory } & \$ 3,600 & \text { Purchases } & \$ 120,000 \
\text { Purchase returns } & 6,000 & \text { Net markups } & 18,000 \
\text { Abnormal shortage } & 4,000 & \text { Net markdowns } & 2,800 \
\text { Sales } & 72,000 & \text { Sales returns } & 1,800 \
\text { Employee discounts } & 1,600 & \text { Normal shortage } & 2,600
\end{array}$$ What is Gooch's ending inventory at retail?
A)$54,400.
B)$56,000.
C)$57,600.
D)$58,400

Quizplus · Accepted Answer

The correct answer is A.Explanation:Ending inventory at retail = Beginning inventory + Purchases + Net markups - Net markdowns - Sales + Sales returns + Employee discounts - Purchase returns - Abnormal shortage - Normal shortage= 3,600 + 120,000 + 18,000 - 2,800 - 72,000 + 1,800 + 1,600 - 6,000 - 4,000 - 2,600= 54,400

Gooch Corporation Had the Following Amounts, All at Retail What Is Gooch's Ending Inventory at Retail? A)$54,400

Gooch Corporation Had the Following Amounts, All at Retail What Is Gooch's Ending Inventory at Retail?
A)$54,400