E6.20-Determine ending inventory at cost using retail method Gepetto Shoe Store uses the retail inventory method for its two departments, Women's Shoes and Men's Shoes. The following information for each department is obtained. Women's Item Shoes Men's Shoes Beginning inventory at cost $25,000 $45,000 Cost of goods purchased at cost 110,000 136,300 Net sales 178,000 185,000 Beginning inventory at retail 46,000 60,000 0 Cost of goods purchased at retail 179,000 185,000 1 Instructions 2 Compute the estimated cost of the ending inventory for each department under the retail inventory method. 3 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 4 5 6 Women's Shoes Men's Shoes 7 Cost Retail Cost Retail 8 Beginning inventory $25,000 $46,000 $45,000 $60,000 9 Goods purchased 110,000 179,000 136,000 185,000 0 Goods available for sale $135,000 225,000 $181,000 245,000 1 Net sales 178,000 185,000 2 Ending inventory at retail $ 47,000 $60,000 3 4 Cost-to-retail ratio: 5 Goods available for sale at cost $135,000 $181,000 6 Goods available for sale at retail $225,000 $245,000 7 Cost-to-retail ratio 60% 74% 8 9 0 1 2 Estimated cost of ending inventory: Cost-to-retail ratio Ending inventory at retail Estimated cost of ending inventory Value Value ? Value Value