On the basis of the following data, what is the estimated cost of the inventory on May 31 using the retail method?
Cost Retail
May 1 Inventory $125,000 $166,667
May 1-31 Purchases $235,000 313,333
May 1-31 Sales 230,000
a. $250,000
b. $187,500
c. $172,500
d. $360,000
Answers: 1
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