The merchandise available for sale cost a company $90,000 and was marked to sell at a retail price of $125,000.Sales during the period totaled $80,000.If the retail method is used,the estimated cost of the ending inventory is

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The estimated cost of the ending inventory is $32,400. This is calculated by multiplying the ending inventory at retail by the cost-to-retail ratio. The cost-to-retail ratio is calculated by dividing the cost of goods available for sale by the retail price of goods available for sale. In this case, the cost-to-retail ratio is $90,000/$125,000 = 0.72. The ending inventory at retail is $125,000 - $80,000 = $45,000. Therefore, the estimated cost of the ending inventory is $45,000 x 0.72 = $32,400.

The Merchandise Available for Sale Cost a Company $90,000 and Was