Chapter 9, Problem 9.13E

Retail inventory method; average cost

• LO9–3

San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2018:

	Cost	Retail
Beginning inventory	$35,000	$50,000
Net purchases	19,120	31,600
Net markups		1,200
Net markdowns		800
Net sales		32,000

Required:

Estimate the average cost of ending inventory and cost of goods sold for October.