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

• Beginning inventory (30 @ $1,000) $ 30,000
• Purchase in February (25 @ $1,100) 27,500
• Purchase in June (60 @ $1,200) 72,000

• Purchase in December (25 @ $1,300) 32,500

• Goods available $162,000

Assume sales of evening gowns totalled 130 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:

1. Compute Holts cost of goods sold for evening gowns in 2017.

2. 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, 30 units.