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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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