Jane's April 1, inventory had a cost of $48,000 and a retail value of $70,000. During April, net purchases cost $210,000 with a retail value of $390,000. Net sales at retail for Jane for April were $280,000. Calculate the cost of ending inventory using the retail inventory method.

Question

Quizplus · Accepted Answer

$48,000 + $210,000 = $258,000; $70,000 + $390,000 = $460,000; $460,000 - $280,000 = $180,000; $258,000 / $460,000 = .5609; $180,000 × .5609 = $100,962,

Jane's April 1, Inventory Had a Cost of $48,000 and a Retail