In the retail inventory method of inventory valuation, the retail amount of inventory refers to the dollar amount measured using selling prices of inventory items.

Question

Quizplus · Accepted Answer

In the retail inventory method, the inventory is valued based on the selling prices of the items, known as the retail value. This is because the method involves calculating the cost of the inventory based on a percentage of its selling price. Therefore, the retail amount refers to the dollar amount measured using selling prices of inventory items.

In the Retail Inventory Method of Inventory Valuation, the Retail