company estimates the cost of its physical inventory at March 31 for use in preparing interim financial statements. The rate ofmarkup oncostis 25%. The following account balances are available as of March 31. 12. A COMPANY INFORMATION TO CALCULATE ENDING INVENTORY USING GROSS PROFIT METHOD Inventory, March1 Purchases Purchase Returns Sales For March 220,000 172,000 8,000 400,000 The estimate of the cost of inventory at March 31 would be: (a) S16,000. (b) $64,000. (c) $84,000. (d) $72,000. Use the following information to answer Questions 13 through 15. The following data concerning the retail inventory method are taken from the financial records of Beige Company. BEIGE COMPANY DATA FOR APPLYING RETAIL INVENTORY METHOD Cost Retail 170,000 119,000 S 448,000 12,000 Beginning Inventory Purchases Freight In Net Markups Net Markdowns Sales 640,000 40,000 28,000 672,000