Apply the Retail Method to the Following Company Information to Calculate

question 207

Essay

Apply the retail method to the following company information to calculate the cost of the ending inventory for the current period.
$$\begin{array} { | l | r | r | } \hline & { \text { Cost } } & { \text { Retail } } \\\hline \text { Beginning inventory } & \$ 20,224 & \$ 31,600 \\\hline \text { Net purchases } & 59,508 & 97,000 \\\hline \text { Sales } & & 89,000 \\\hline\end{array}$$

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Definitions:

Income Percentage

A portion or share of one's earnings or income, expressed as a percentage of the total.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a particular year, relative to a base year.

Consumer Price Index

A barometer that records the average change through the timeline in the financial outlay by urban consumers for a determined assortment of consumer products and services.

Italian Shoes

High-quality footwear produced in Italy, known for their craftsmanship and design.