RDD Inc uses the retail inventory method to estimate ending inventory for its monthly financial statements The following data pertains to one of its departments for the month of October 2020 Cost Retail Beginning inventory $40,000 $65,000 Purchases 215,000 440,000 Freight in 15,600 Purchase returns 4,200 6,700 Markups 6,700 Markup cancellations 400 Markdowns 3,500 Markdown cancellations 300 Employee discounts 2,200 Sales 300,000 Sales discounts 4,000 Required Compute the cost of ending inventory for October using the retail method

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Question: RDD Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertains to one of its departments

RDD Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertains to one of its departments for the month of October 2020:

	*Cost*	*Retail*
Beginning inventory	$40,000	$65,000
Purchases	215,000	440,000
Freight-in	15,600	-
Purchase returns	4,200	6,700
Markups		6,700
Markup cancellations		400
Markdowns		3,500
Markdown cancellations		300
Employee discounts		2,200
Sales		300,000
Sales discounts		4,000

Required

Compute the cost of ending inventory for October using the retail method.

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