Calculate ending inventory at cost using COGS formula

Steps:

• Total goods available = beginning inventory + purchases = $15,000 +$18,000 = $33,000.
• Cost of goods sold (COGS) = sales ÷ (1 + markup) = $21,000 ÷ 1.5 =$14,000.
• Ending inventory = goods available - COGS = $33,000 -$14,000 = $19,000.
• Stolen inventory cost = ending inventory = $19,000.

Why C is correct:

• Ending inventory at cost equals beginning inventory + purchases - COGS, per the inventory flow formula.

Why the others are wrong:

• A: Ignores purchases and sales; just halves beginning inventory.
• B: Understates by subtracting full sales from beginning inventory.
• D: Overstates by adding sales markup to total available.

Final answer: C