Calculate Cost of Ending Inventory Using the Retail Method

question 17

Short Answer

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