At December 31, 2007 the following information was available from Crisford Company’s books:
|
Cost |
Retail |
|
|
Inventory, 1/1/07 |
$14,700 |
$20,300 |
|
Purchases |
83,300 |
115,500 |
|
Additional markups |
— |
4,200 |
|
Available for sale |
$98,000 |
$140,000 |
Sales for the year totaled $110,600; markdowns amounted to $1,400. Under the approximate lower of average cost or market retail method, Crisford’s inventory at December 31, 2007 was
a. $30,800
b. $28,000.
c. $21,560
d. $19,600