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Question
Garrison Company uses the retail method of inventory costing. It started the year with an inventory that had a retail cost of $45,000. During the year, Garrison purchased an inventory with a retail sales value of $300,000. After performing a physical inventory, Garrison found the inventory at retail to be $80,000. The markup is 100% of cost. Determine the ending inventory at its estimated cost.
a. $160,000
b. $80,000
c. $40,000
d. $45,000
Answer
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