EXERCISE 8.10 Estimating Inventory by the Retail Method LO8-6 Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each month without taking a physical inventory. Phillips has provided the following inventory data. a. Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation. b. Was the cost of Phillips's inventory, as a percentage of retail selling prices, higher or lower in July than it was in June? Explain. Exercise 8.10 Part A Cost ratio during July Estimated cost of goods sold Estimated ending inventory (at cost): Cost of goods available for sale during July Less: Estimated cost of goods sold Estimated ending inventory Part B