The merchandise available for sale cost a company $90,000 and was marked to sell at a retail price of $125,000. Sales during the period totaled $80,000. If the retail method is used, the estimated cost of the ending inventory is

Question

Quizplus · Accepted Answer

The cost-to-retail percentage is 90,000/125,000 = 72%. The cost of goods sold is 72% of $80,000, which is $57,600. The estimated cost of the ending inventory is $90,000 - $57,600 = $32,400.

The Merchandise Available for Sale Cost a Company $90,000 and Was