Octave Company had the following cost and retail pricing on its merchandise inventory.
$\begin{array} { l c r }
& \text { Cost } & \text { Retail } \
\text { Beginning Merchandise Inventory } & \$ 150,000 & \$ 187,500 \
\text { Net Purchases } & 712,500 & 890,625
\end{array}$
The net sales revenue for the time period was $65,000. Compute the estimated cost of ending merchandise inventory by the retail method.

Question

Octave Company had the following cost and retail pricing on its merchandise inventory.
$\begin{array} { l c r } 
& \text { Cost } & \text { Retail } \
\text { Beginning Merchandise Inventory } & \$ 150,000 & \$ 187,500 \
\text { Net Purchases } & 712,500 & 890,625
\end{array}$
The net sales revenue for the time period was $65,000. Compute the estimated cost of ending merchandise inventory by the retail method.

Quizplus · Accepted Answer

The Answer of Octave Company had the following cost and retail pricing on its merchandise inventory.
$\begin{array} { l c r } 
& \text { Cost } & \text { Retail } \
\text { Beginning Merchandise Inventory } & \$ 150,000 & \$ 187,500 \
\text { Net Purchases } & 712,500 & 890,625
\end{array}$
The net sales revenue for the time period was $65,000. Compute the estimated cost of ending merchandise inventory by the retail method.

Octave Company Had the Following Cost and Retail Pricing on Its