r answer to question 7 on the following data obtained from the records Base your of the Quality Men's Shop as of December 31, 20x1 Inventory-December 31, 20x0 s 15,210 28,420 Cost Selling price Cost Seling price Purchases: 93,450 154,900 1,560 Returns Purchases Cost Selling price 2,220 3,320 173,500 Sales REQUIRED: Using the work sheet provided at the back of this unit, compute the December 31, 20x1, inventory at cost, using the retail inventory method. Then answer the following question 7-The ending inventory at cost is A. $10,833, B. $6,500 C. $3,900 D. $2,600 Base your answer to question 8 on the following account balances taken from the ledger of the Wizard Company as of December 31, 20X3 Sales Sales returns and allowances Purchases Transportation-irn Purchase returns and allowances $725,200 15,240 529,210 5,900 4,750 90,450 Merchandise inventory, December 31, 20x2 REQUIRED: The gross profit was 30% of net sales in all previous years. Prepare an estimate of the December 31, 20X3, inventory, using the work sheet provided at the back of this unit, and then answer question 8 8. The estimated December 31, 20X3, inventory, computed by using the gross-profit method of estimating inventories is A. $123,838 B. $117,938 C. $113,170 D. $111,210