Answer:
$21,000
Explanation:
Calculation for the estimated ending inventory using the conventional retail method
Cost Retail
Beginning inventory $49,000 $56,000
Net purchases 164,000 207,000
Net markups $0 21,000
Total $213,000 $284,000
Less net markup $0 ($27,000)
Goods available for sale $213,000 $257,000
Less Net sales $0 $229,000
FEstimated ending inventory at retail
$0 $28,000
Estimated ending inventory at cost $21,000
(75× $28,000)
Calculation for Cost to retail percentage
Cost to retail percentage =$213,000/$284,000
Cost to retail percentag=0.75 ×100
Cost to retail percentag=75%
Therefore the estimated ending inventory using the conventional retail method is $21,000
