help.Please. thanks st Assignment ×NE: Cengage Off y .. CengageNOW C Not secure

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help.Please. thanks

st Assignment ×NE: Cengage Off y .. CengageNOW C Not secure v2.cengagenow.com/ilm/takeAssignment takeAssignment ain doinvoker-assignments&takeAssignment; e Retail Inventory Method The following information is provided by Raynette's Pharmacy for the last quarter of its fiscal year ending on March 31, 20- Cost Retail Inventory, start of period, January 1, 20-- Net purchases during the period Net sales for the period Required: 1. Estimate the ending inventory as of March 31 using the retail inventory method. $33,200 $51,800 168,016 262,600 262,600 2. Estimate the cost of goods sold for the time period January 1 through March 31 using the retail inventory method

Explanation / Answer

1. ending inventory $33,152

2, Cost of goods sold $ 168,064

Calculation of gross profit

gross profit = 1 - (Cost of purchase + inventory ) / (retail price + inventory retail price)

= 1 - ($33,200+168,016)/($51800 + $262,600)

= 36%

Amount a Beginning Inventory $          33,200 b Purchase Goods $        168,016 c Net sales $        262,600 d Gross profit (c*36%) $          94,536 e Cost of goods sold (c-d) $        168,064 f Closing Inventory (a+b-e) $          33,152

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