Use the retail inventory method to estimate Wichita”s 2011 ending inventory at cost.
In 2011, Wichita Company had net sales (at retail) of $130,000. The following additional information is available from its records at the end of 2011. Use the retail inventory method to estimate Wichita’s 2011 ending inventory at cost.
AT Cost
At Retail
Beginning inventory
$ 31,900
$64,200
Cost of goods purchased
57,810
98,400