Phair Co., a specialty clothing store, uses the retail inventory method. The following relates to 2020 operations:
Inventory, January 1, 2020, at cost $14,200
Inventory, January 1, 2020 at sales price 20,100
Purchases in 2020 at cost 32,600
Purchases in 2020 at sales price 50,000
Additional markups on normal sales price 1,900
Sales (including $4,200 of items that were marked down from $6,400) 60,000
The cost of the December 31, 2020 inventory determined by the conventional retail method is:
A. $9,800
B. $6,370
C. $6,743
D. $6,543
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