Question text Assume the following data for a retailer's inventory. Retail Inventory # units $ /...

Question text

Assume the following data for a retailer's inventory.

Retail Inventory	# units	$ / unit	Total
Beginning Inventory	1	20	20
Purchase of Inventory	1	22	22
Purchase of Inventory	1	24	24
Purchase of Inventory	1	26	26
Goods Available for Sale (GAFS)	4		92
Sale of Inventory	1	40	40
Ending Inventory	3

Expert Solution

Under retail method of valuation of inventory, closing inventory is calculated based on the retail value of the units. Sale is done at $40, thus retail value per unit is $40.

Particulars	No. of units	Cost per unit	Total
Bagining Inventory	1.00	$ 20.00	$ 20.00
Purchase	1.00	$ 22.00	$ 22.00
Purchase	1.00	$ 24.00	$ 24.00
Purchase	1.00	$ 26.00	$ 26.00
Goods Available for sale	4.00		$ 92.00
Sale of Invetory	1.00	$ 40.00	$ 40.00
Ending Inventory	3.00	$ 40.00	$ 120.00

ekkarill92 answered 3 years ago

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