Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Experience the ease of finding accurate answers to your questions from a knowledgeable community of professionals. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
Answer:
$76,680
Explanation:
With regards to the above
Using the cost method
Goods available for sale:
= Beginning inventory + Purchases
= $120,000 + $383,000
= $503,000
Using retail method
Goods available for sale
= Beginning inventory + Purchases + Net markups - Net markdowns
= $146,000 + $580,000 + $33,000 - $51,000
= $708,000
Now, cost to retail ratio
= $503,000 ÷ $708,000
= 0.71
Estimated ending inventory at retail
= Goods available for sale under retail method - Net sales revenue
= $708,000 - $600,000
= $108,000
Therefore, estimated ending inventory = Estimated ending inventory at retail × Cost to retail ratio
= $108,000 × 0.71
= $76,680
Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.