Calculate ending inventory using COGS adjusted for 50% markup

Steps:

• Sum goods available for sale: beginning inventory $15,000 + purchases$18,000 = $33,000.
• Compute COGS from sales: $21,000 sales at 50$21,000 / 1.5 = $14,000.
• Find ending inventory: $33,000 -$14,000 = $19,000 (cost of stolen inventory).

Why C is correct:

• Ending inventory cost equals goods available minus COGS, per the inventory formula, with COGS derived from sales divided by (1 + markup rate).

Why the others are wrong:

• A: Understates by using only half of beginning inventory, ignoring purchases and sales.
• B: Misapplies markup, perhaps treating sales as cost without adjustment.
• D: Overstates by adding sales value without converting to cost basis.

Final answer: C