Asked by Michelle McDade on May 22, 2024
Verified
Hard Candy has a beginning inventory of $1,600 with a retail value of $2,000. June purchases were $3,000, with a retail value of $5,000 and retail sales were $4,700. What is the June 30 estimated ending inventory at cost under the retail method? (Round any percentages to two decimal places, X.XX%, and your final answer to the nearest dollar.)
A) $2,300
B) $1,051
C) $3,088
D) $1,511
Retail Method
A method used to determine the value of the ending inventory using a cost-to-retail ratio. Often used for interim financial reports.
Ending Inventory
The aggregate value of products on offer for sale when an accounting period closes.
Estimated Cost
An approximation of the financial outlay that would be required to complete a project, procure goods, or carry out a service.
- Comprehend the methods for determining and logging inventory costs within diverse inventory systems.
- Understand how the retail inventory method estimates ending inventory.
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Learning Objectives
- Comprehend the methods for determining and logging inventory costs within diverse inventory systems.
- Understand how the retail inventory method estimates ending inventory.
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