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Retail Method On the basis of the following data, estimate the cost of the merchandise inventory at June 30 by the retail method: Cost Retail
Retail Method
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 | $165,000 | $275,000 | |
| June 130 | Purchases (net) | 2,361,500 | 3,800,000 | |
| June 130 | Sales (net) | 3,550,000 |
| Cost of the Merchandise Inventory | |||
| June 30 | |||
| Cost | Retail | ||
| Merchandise inventory, June 1 | $ | $ | |
| Purchases in June (net) | |||
| Merchandise available for sale | $ | $ | |
| Ratio of cost to retail price: | % | ||
| Sales for June (net) | |||
| Merchandise inventory, June 30, at retail price | $ | ||
| Merchandise inventory, June 30, at estimated cost | $ | ||
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