The beginning inventory was estimated at 80% of sales. Determine the amount for the beginning inventory?

Beginning inventory…………N?
Purchases………………….N?
Ending inventory……………N4,800
Sales……………………..N12,800
Wages……………………..N1,040
Gross profit……………….N5,900

A. N20,140
B. N10,240
C. N8,140
D. N7,240

Correct Answer:

Option B – N10,240