Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each month without taking a physical inventory. Phillips has provided the following inventory data: Inventory of merchandise, June 30 Purchases during July Goods available for sale during July Net sales during July Required: Cost Price $ 294,000 216,000 $ 510,000 Estimated cost of goods sold Estimated ending inventory Retail Selling Price $ 491,000 398,000 $ 889,000 $ 280,000 a. Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation. Note: Round your intermediate calculations to 2 decimal places.

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 8.10 (Algo) Estimating Inventory by the Retail Method (LO8-6)
Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each
month without taking a physical inventory. Phillips has provided the following inventory data:
Inventory of merchandise, June 30
Purchases during July
Goods available for sale during July
Net sales during July
Required:
Cost Price
$ 294,000
216,000
$ 510,000
Estimated cost of goods sold
Estimated ending inventory
Retail Selling
Price
$ 491,000
398,000
$ 889,000
$ 280,000
a. Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation.
Note: Round your intermediate calculations to 2 decimal places.
Transcribed Image Text:Exercise 8.10 (Algo) Estimating Inventory by the Retail Method (LO8-6) Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each month without taking a physical inventory. Phillips has provided the following inventory data: Inventory of merchandise, June 30 Purchases during July Goods available for sale during July Net sales during July Required: Cost Price $ 294,000 216,000 $ 510,000 Estimated cost of goods sold Estimated ending inventory Retail Selling Price $ 491,000 398,000 $ 889,000 $ 280,000 a. Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation. Note: Round your intermediate calculations to 2 decimal places.
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