Garrison Company uses the retail method of inventory costing. It started the year with an inventory that had a retail cost of $36,000. During the year, Garrison purchased an inventory with a retail sales value of $64,000. After performing a physical inventory, Garrison calculated the inventory at retail to be $30,000. The mark up is 62% of cost. Determine the ending inventory at its estimated cost.

Select one:

a.

$18,600

b.

$30,000

c.

$40,000

d.

$36,000