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Curtis Company must estimate its ending inventory and has the following information available from the most recent accounting period: Cost Retail Jan 1 Inventory $
| Curtis Company must estimate its ending inventory and has the following information | ||||||
| available from the most recent accounting period: | ||||||
| Cost | Retail | |||||
| Jan 1 Inventory | $ 85,000 | $ 160,250 | ||||
| Net Cost of Goods Purchased | 493,000 | 689,750 | ||||
| Sales | 689,000 | |||||
| Sales Returns | 24,000 | |||||
| a. Compute the December 31 inventory for Curtis using the retail method. | ||||||
| b. Compute the December 31 inventory for Curtis Company using the gross profit method | ||||||
| The gross profit rate has historically been 35% of net sales | ||||||
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