Shannon's Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been developed for the month of July: $$\begin{array} { l r r }
& \text { At Cost } & \text { At Retail } \
\text { Beginning inventory } & \$ 36,000 & \$ 50,000 \
\text { Merchandise purchases }& 99,000 & 150,000
\end{array}$$ The net sales for July amounted to $150000.
Instructions
Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.

Question

Shannon's Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been developed for the month of July: $$\begin{array} { l r r } 
 & \text { At Cost } & \text { At Retail } \
\text { Beginning inventory } & \$ 36,000 & \$ 50,000 \
\text { Merchandise purchases }& 99,000 & 150,000
\end{array}$$ The net sales for July amounted to $150000.
Instructions
Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.

Quizplus · Accepted Answer

The Answer of Shannon's Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been developed for the month of July: $$\begin{array} { l r r } 
 & \text { At Cost } & \text { At Retail } \
\text { Beginning inventory } & \$ 36,000 & \$ 50,000 \
\text { Merchandise purchases }& 99,000 & 150,000
\end{array}$$ The net sales for July amounted to $150000.
Instructions
Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.

Shannon's Department Store Prepares Monthly Financial Statements but Only Takes