Fashion house uses the retail method to estimate ending inventory in his monthly financial statements the following information is available for the month end of july 1 sales 200,000 immature july 1 171,000 and 300,000 net purchases 90,000 and 150,000 goods available for sale 261,000 and 450,000 using the retail method

If we used the retail method to estimate the ending inventory first we get the given of the problem that can be used in solving.
 Given
  Sales - 200,000
  Goods available for sale - 261,000 (cost) & 450,000 (retail) 

First, we need to get the cost of retail ratio. the formula is 
 Cost to Retail ratio= Cost/ Retail
           261,000
CRR=   =   0.58
           450,000

Next is to get the ending inventory by following this steps
                                                              Cost             Retail
Cost of Goods Available for Sale    $261,000        $450,000
- Sales                                                                        $200,000
                                                                                 
Ending Inventory                                                        $250,000
x Cost to Retail Ratio                                                           .58
                                                                                 
Ending Inventory                                                       $145,000

So, the estimated ending inventory for the month of July is $145,000. 

Answer the correct answer is price ceiling;