Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 34

Estimating Inventory by the Retail Method
Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each month without taking a physical inventory.hillips has provided the following inventory data:

a.stimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation.
b.as the cost of Phillips's inventory, as a percentage of retail selling prices, higher or lower in July than it was in June Explain.