Trask Inc Uses the Average Cost Retail Method to Estimate Its

question 48

Essay

Trask Inc. uses the average cost retail method to estimate its ending inventory. Partial information at June 30, 2009, is as follows:
Required:
Assuming Trask's cost-to-retail = 60%, compute Trask's beginning inventory at retail.
$$\begin{array} { l c r } & \text { Cost } & \text { Retail } \\\text { Beginning inventory } & \$ 62,000 & ? ? ? \\\text { Net purchases } & 238,000 & 319,000 \\\text { Net sales } & & 430,000 \\\text { Ending inventory } & 42,000 &\end{array}$$

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Definitions:

Synthesis Reaction

A process where multiple substances merge to create a compound that is more complex.

Decomposition Reaction

A chemical process where a lone compound decomposes into multiple, less complex materials.

Activation Energy

Activation energy is the minimum quantity of energy that a chemical species must possess in order to undergo a specified reaction.

Kinetic Energy

The energy that an object possesses due to its motion.