On the basis of the following data, estimate the cost of the inventory at June 30 by the retail method: Date Line Item Description Cost Retail June 1 Inventory $165,000 $275,000 June 1–30 Purchases (net) 2,361,500 3,800,000 June 1–30 Sales 3,550,000 blankCost of the InventoryJune 30 Line Item Description Percentage Cost Retail Inventory, June 1 Purchases in June Merchandise available for sale Ratio of cost to retail price: % Sales for June Inventory, June 30, at retail price Inventory, June 30, at estimated cost
On the basis of the following data, estimate the cost of the inventory at June 30 by the retail method: Date Line Item Description Cost Retail June 1 Inventory $165,000 $275,000 June 1–30 Purchases (net) 2,361,500 3,800,000 June 1–30 Sales 3,550,000 blankCost of the InventoryJune 30 Line Item Description Percentage Cost Retail Inventory, June 1 Purchases in June Merchandise available for sale Ratio of cost to retail price: % Sales for June Inventory, June 30, at retail price Inventory, June 30, at estimated cost
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
Related questions
Question
On the basis of the following data, estimate the cost of the inventory at June 30 by the retail method:
| Date | Line Item Description | Cost | Retail |
|---|---|---|---|
| June 1 | Inventory | $165,000 | $275,000 |
| June 1–30 | Purchases (net) | 2,361,500 | 3,800,000 |
| June 1–30 | Sales | 3,550,000 |
blankCost of the InventoryJune 30
| Line Item Description | Percentage | Cost | Retail |
|---|---|---|---|
|
Inventory, June 1
|
|||
|
Purchases in June
|
|||
|
Merchandise available for sale
|
|||
| Ratio of cost to retail price: | % | ||
|
Sales for June
|
|||
|
Inventory, June 30, at retail price
|
|||
|
Inventory, June 30, at estimated cost
|
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