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The June 1 Inventory of the Kaufman Company Had a Cost

Question 89

Essay

The June 1 inventory of the Kaufman Company had a cost of $8,000 and a retail value of $20,000. During June, merchandise was purchased for $36,000 and marked to sell for $60,000. June sales totaled $45,000. Use the retail method to compute the answers to the following questions.
1. What is the retail value of the ending inventory as of June 30?
2. What is the approximate cost of the ending inventory?
3. What is the cost of goods sold during June?

Correct Answer:

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1. $35,000; 2. $19,2...

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