Calculate Cost of Ending Inventory Using the Retail Method

question 17

Short Answer

Calculate cost of ending inventory using the retail method:
$$\begin{array} { | l | c | c | } \hline & \text { Cost } & \text { Retail Price } \\\hline \text { Beginning Inventory } & \$ 60,000 & \$ 102,000 \\\hline \text { Purchases during the year } & \$ 25,000 & \$ 40,000 \\\hline \text { Sales for Year } & \$ 60,000 & \\\hline\end{array}$$

---

Definitions:

Ongoing Activity

An action or series of actions that continue over a period of time, without a specific end point, often aimed at maintaining or improving a certain condition or state.

Valid Performance Appraisal

An evaluation process that accurately and reliably measures an employee's job performance and productivity.

Measurement Criteria

Standards or benchmarks used to evaluate or assess the effectiveness, quality, or performance of something.

Reliable Measures

Assessment tools or methods that consistently produce the same results under the same conditions, indicating high reliability.