Chapter 5, Problem 9PSA

1.

Summary Introduction

Concept introduction:

Retail inventory method is one of the methods of estimation of value of the inventory. Under this method, the cost of goods sold is calculated by using the net sales amount and cost of sales ratio, and the ending inventory is calculated on the basis of cost of goods sold calculated.

To calculate: The estimated cost of ending inventory.

2.

Summary Introduction

Concept introduction:

Retail inventory method is one of the methods of estimation of value of the inventory. Under this method, the cost of goods sold is calculated by using the net sales amount and cost of sales ratio, and the ending inventory is calculated on the basis of cost of goods sold calculated.

To calculate: The inventory shrinkage amount.