Asked by Chirag Parmar on Jul 05, 2024
Verified
Determine the estimated cost of the ending inventory for Market Surplus as of September 30 by the retail method from the following data (use four decimal places). 
Estimated Cost
An approximation of the financial expenditure associated with a project or production.
Ending Inventory
The final value of goods available for sale at the end of an accounting period after subtracting the cost of goods sold.
Retail Method
A pricing strategy used in retail to maintain a consistent profit margin by marking up goods based on their wholesale cost.
- Determine the estimated cost of ending inventory using the retail inventory method.
Verified Answer
$5,250/$6,500 × $2,500 = $2,019.23 Estimated cost
Learning Objectives
- Determine the estimated cost of ending inventory using the retail inventory method.
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