Bright Garden Center had the following data for May:
$$\begin{array} { | l | r | r | }
\hline & \text { Cost Price } & \text { Retail Price } \
\hline \text { Beginning inventory } & \$ 2,000 & \$ 3,600 \
\hline \text { Purchases } & 3,000 & 4,400 \
\hline \text { Sales } & & 4,500 \
\hline
\end{array}$$
Use four decimal places.The cost of the estimated inventory on May 31 under the retail method is:

Question

Bright Garden Center had the following data for May:
$$\begin{array} { | l | r | r | } 
\hline & \text { Cost Price } & \text { Retail Price } \
\hline \text { Beginning inventory } & \$ 2,000 & \$ 3,600 \
\hline \text { Purchases } & 3,000 & 4,400 \
\hline \text { Sales } & & 4,500 \
\hline
\end{array}$$
Use four decimal places.The cost of the estimated inventory on May 31 under the retail method is:

Quizplus · Accepted Answer

The cost-to-retail ratio is calculated as (Beginning Inventory Cost + Purchases Cost) / (Beginning Inventory Retail + Purchases Retail) = (2000 + 3000) / (3600 + 4400) = 5000 / 8000 = 0.625. The ending inventory at retail is (Beginning Inventory Retail + Purchases Retail - Sales) = (3600 + 4400 - 4500) = 3500. The estimated inventory cost is 3500 * 0.625 = 2187.50.

Bright Garden Center Had the Following Data for May Use Four Decimal Places