Retail Method
Global Office Supply Uses the Retail Method to Estimate

Retail method
Global Office Supply uses the retail method to estimate ending inventory in its monthly financial statements. The following information is available for the month ended 31 July:
$\begin{array}{|l|r|r|}\hline &{\text { Cost }} & {\text { Retail }} \\\hline \text { Sales } & & \$ 600,000 \\\hline \text { Inventory, 1 July } & \$ 274,800 & 396,000 \\\hline \text { Net purchases } & 369,600 & 546,000 \\\hline \text { Goods available for sale } & \$ 644,400 & \$ 942,000 \\\hline\end{array}$ Using the retail method:
(a) Determine the cost ratio that should be used in estimating the inventory at 31 July.
___________%
(b) Estimate the cost of the inventory at 31 July. $________________
(c) Estimate the cost of goods sold for July. $________________