In preparing a retail method of accounting worksheet,your accountant has provided you with the following data: December 1,20XX - December 31,20YY
At Cost At Retail
Beginning inventory $ 70,000 135,000
Net purchases 650,000 1,300,000
Additional markups --- 100,000
Transportation charges 12,000 ---
What is the correct cost complement?

Question

Quizplus · Accepted Answer

The cost complement is calculated as the cost of goods available for sale at cost divided by the cost of goods available for sale at retail. Here, it is ($70,000 + $650,000 + $12,000) / ($135,000 + $1,300,000 + $100,000) = $732,000 / $1,535,000 = 0.48.

In Preparing a Retail Method of Accounting Worksheet,your Accountant Has