NEED ANSWER AS SOON AS POSSIBLE...

Suppose Holt Renfrew, the specialty retailer, had these records for ladies evening gowns during 2017.

• Beginning inventory (50 @ $1,000) $ 30,000
• Purchase in February (26 @ $1,100) 27,500
• Purchase in June (75 @ $1,200) 72,000

• Purchase in December (40 @ $1,300) 32,500

• Goods available $162,000

Assume sales of evening gowns totalled 156 units during 2017 and that Holt uses the weighted-average-cost method under the periodic inventory system to account for inventory. The income tax rate is 30%.

Requirements:

Compute what cost of goods sold would have been if Holt had purchased enough inventory in Decemberat $1,300 per evening gownto keep year-end inventory at the same level it was at the beginning of the year, 50 units.