A Retailer Has a Standard Mark-Up of 25% on Cost

question 108

Essay

A retailer has a standard mark-up of 25% on cost. For the month of June, the company recorded sales of $200,000 and purchases of $170,000. Inventory at the beginning of June was estimated to be $240,000.
Required:
Using the gross margin method, estimate the cost of goods sold for the month of June and the cost of inventory at the end of June.

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Definitions:

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