The records of Alaina Co provide the following information for the year ended December 31 Jan 1 begin bal at cost 81670 at retail 114610 cost og goods at cost 492250 at retail 751730 sales at retail?

Answer 1

{| |- | Alaina Co. At Cost At Retail At Cost At Retail Goods available for sale

Beginning Inventory

81670 114610

78550 Cost of goods purchased

492250 751730

751730 Goods available for sale

573920 866340

830280 Less: net sales at retail

786120

786120 Less: sales at returns

4480

4480 ending inventory at retail

84700

48640

Cost at retail ratio (573920 ÷ 866340) 66%

Estimated ending inventory at cost $ 55,902

|}

Answer 2

The cost-to-retail ratio for beginning inventory is 0.711, calculated by dividing the beginning cost of $81,670 by the beginning retail of $114,610. Cost of goods sold is $492,250 and sales are $751,730 at retail, so you can estimate cost of goods sold as $349,953 (0.466 x $751,730).