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On January 1, JKR Shop had $610,000 of beginning inventory at cost. In the first quarter of the year, it purchased $1,750,000 of merchandise, returned
On January 1, JKR Shop had $610,000 of beginning inventory at cost. In the first quarter of the year, it purchased $1,750,000 of merchandise, returned $24,700, and paid freight charges of $39,200 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 30%, and the store had $2,160,000 of net sales (at retail) in the first quarter of the year Use the gross profit method to estimate its cost of inventory at the end of the first quarter. $ 610,000 Beginning inventory, January 1 Net cost of goods purchased Estimated March 31 inventory Dakota Company had net sales (at retail) of $134,000. Beginning inventory Cost of goods purchased At Cost At Retail $32,300 $64,600 64,106 98,800 The above additional information is available from its records. Use the retail inventory method to estimate Dakota's year-end inventory at cost. (Round cost ratio to the nearest whole percentage.) At Cost Cost-to-Retail Ratio At Retail $ $ Beginning inventory Cost of goods purchased 32,300 64,106 96,406 64,600 98,800 163,400 $ $ Net sales at retail
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