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Crunch Company uses the conventional retail inventory method to account for inventory. The following information related to 2016 operations: Average Cost Retail Beginning inventory and
Crunch Company uses the conventional retail inventory method to account for inventory. The following information related to 2016 operations:
|
| Average | |
|
| Cost | Retail |
| Beginning inventory and purchases | $450,000 | $690,000 |
| Net markups |
| 30,000 |
| Net markdowns |
| 45,000 |
| Sales |
| 585,000 |
Required: What amount should be reported as cost of sales for 2016?
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