Question
On the basis of the following data, estimate the cost of the merchandise inventory at June 30 by the retail method: Cost Retail June 1
On the basis of the following data, estimate the cost of the merchandise inventory at June 30 by the retail method:
| Cost | Retail | ||
| June 1 | Merchandise Inventory | $ 175,000 | $ 260,000 |
| June 1-30 | Purchases (net) | 2,347,780 | 3,809,000 |
| June 1-30 | Sales | 3,590,000 |
Estimate the cost of the merchandise inventory at June 30 by the retail method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
| Estimated cost of merchandise sold | |
| Less estimated gross profit | |
| Merchandise available for sale | |
| Merchandise inventory, June 1 | |
| Merchandise inventory, June 30, at estimated cost | |
| Merchandise inventory, June 30, at retail | |
| Purchases in June (net) | |
| Ratio of cost to retail price | |
| Sales for June |
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Performance Auditing Measuring Inputs, Outputs, And Outcomes
Authors: Stephen L. Morgan, Ronell B. Raaum, Colleen G. Waring
3rd Edition
0894139762, 9780894139765
