Answer to Question #79835 in Finance for Like Heron

Question

1)Use the retail inventory method to calculate the value of ending inventory for an organisation which has:

An opening inventory at cost of $850,000 and a retail value of $2,100,000.Purchases for the year totalled at cost $650,000 and the retail value of the purchases is $1,000,000.Sales for the year at retail price totalled $2,650,000.Mark-ups of $80,000 and markdowns of $35,000 during the year.