Turturro Department Store utilizes the retail inventory method to estimate its inventories. It calculated its cost to retail ratio during the period at 75%. Goods available for sale at retail amounted to $600,000 and goods were sold during the period for $420,000. The estimated cost of the ending inventory is
A) $135,000.
B) $180,000.
C) $315,000.
D) $450,000.

Question

Quizplus · Accepted Answer

The ending inventory at retail is $600,000 - $420,000 = $180,000. The estimated cost of the ending inventory is $180,000 * 75% = $135,000.

Turturro Department Store Utilizes the Retail Inventory Method to Estimate