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Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each month without taking a
Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each month without taking a physical inventory. Phillips has provided the following inventory data.
Cost Price | Retail Selling Price | ||||||
Inventory of merchandise, June 30 | $ | 310,000 | $ | 500,000 | |||
Purchases during July | 218,000 | 390,000 | |||||
Goods available for sale during July | $ | 528,000 | $ | 890,000 | |||
Net sales during July | 200,000 | ||||||
a. Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation. (Round your intermediate calculations to 2 decimal places.)
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