The estimated ending inventory at retail is:
A)$27,300.
B)$25,000.
C)$26,600.
D)$26,400.$25,000

Question

Quizplus · Accepted Answer

The question states that the cost-to-retail percentage is 70%. Therefore, the cost of goods sold can be calculated as $39,000 divided by 0.7, which is equal to $55,714.29. To find the ending inventory at retail, we can subtract the cost of goods sold at retail from the total cost of goods available for sale at retail. This gives us $110,000 minus $55,714.29, which equals $54,285.71. Therefore, the estimated ending inventory at retail is $25,000.

The Estimated Ending Inventory at Retail Is