The records of Hamilton Apparel display the following data for the month of October:Sales$72,500Purchase (at cost)$35,000Sales returns$1,500Purchase (at retail)$65.800Markups$6,500Purchase return (at cost)$1,500Markup cancellations$900Purchase return (at retail)$2,100Markdowns$5,200Beginning inventory (at cost)$20,500Markdown cancellations$1,200Beginning inventory (at retail) $30,700Freight on purchase$2,200Required:a. Estimate the ending inventory using the retail inventory method. Round the cost ratioto two decimal places based on % (e.g, 36.76%). [Please note it is NOT conventionalretail method].Wb. Estimate the ending inventory using the conventional retail inventory method. Roundthe cost ratio to two decimal places based on % (e.g, 36.76%).

Retail inventory method is used by retailers to find the estimated ending inventory balance.This…

Answered: Estimate the ending inventory using the…

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Estimate the ending inventory using the retail inventory method. Re 74%) [Please note it is

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Question

The records of Hamilton Apparel display the following data for the month of October:
Sales
$72,500
Purchase (at cost)
$35,000
Sales returns
$1,500
Purchase (at retail)
$65.800
Markups
$6,500
Purchase return (at cost)
$1,500
Markup cancellations
$900
Purchase return (at retail)
$2,100
Markdowns
$5,200
Beginning inventory (at cost)
$20,500
Markdown cancellations
$1,200
Beginning inventory (at retail) $30,700
Freight on purchase
$2,200
Required:
a. Estimate the ending inventory using the retail inventory method. Round the cost ratio
to two decimal places based on % (e.g, 36.76%). [Please note it is NOT conventional
retail method].
W
b. Estimate the ending inventory using the conventional retail inventory method. Round
the cost ratio to two decimal places based on % (e.g, 36.76%).

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