Pancho Steinberg's uses the retail inventory method. A formula not used by the company is:

Question

Quizplus · Accepted Answer

The formula "Goods Available for Sale at Retail - Goods Available for Sale at Cost = Retail Price of Goods Sold" is not a part of the retail inventory method. The correct formula for calculating the cost of goods sold would be "Goods Available for Sale at Retail - Ending Inventory at Retail = Cost of Goods Sold" or "Beginning Inventory at Cost + Net Purchases at Cost - Ending Inventory at Cost = Cost of Goods Sold".

Pancho Steinberg's Uses the Retail Inventory Method