Tack Room Clothing uses the retail method to estimate cost of ending inventory for its interim reports.From the following facts,estimate Tack Room's ending inventory at cost at August 31.
$$\begin{array} { l r }
\text { August } 1 \text { inventory at cost } & \$ 900 \
\text { August } 1 \text { inventory at retail } & 1,200 \
\text { Net purchases at cost } & 9,000 \
\text { Net purchases at retail } & 12,000 \
\text { Net sales at retail } & 12,500
\end{array}$$

Question

Tack Room Clothing uses the retail method to estimate cost of ending inventory for its interim reports.From the following facts,estimate Tack Room's ending inventory at cost at August 31.
 $$\begin{array} { l r } 
\text { August } 1 \text { inventory at cost } & \$ 900 \
\text { August } 1 \text { inventory at retail } & 1,200 \
\text { Net purchases at cost } & 9,000 \
\text { Net purchases at retail } & 12,000 \
\text { Net sales at retail } & 12,500
\end{array}$$

Quizplus · Accepted Answer

The Answer of Tack Room Clothing uses the retail method to estimate cost of ending inventory for its interim reports.From the following facts,estimate Tack Room's ending inventory at cost at August 31.
 $$\begin{array} { l r } 
\text { August } 1 \text { inventory at cost } & \$ 900 \
\text { August } 1 \text { inventory at retail } & 1,200 \
\text { Net purchases at cost } & 9,000 \
\text { Net purchases at retail } & 12,000 \
\text { Net sales at retail } & 12,500
\end{array}$$

Tack Room Clothing Uses the Retail Method to Estimate Cost