Valuing Inventory Using Average Cost Retail Method

Dean Company uses the retail inventory method to estimate its inventory for interim statement disclosures. Data relating to the computation of the inventory at July 31, 2020, follow. Compute estimated inventory on July 31, 2020, using the average cost retail method.

Round any cost ratios used in your calculations to two digits after the decimal; for example, use 0.42 for 0.424 or 0.43 for 0.425.

	Cost	Retail
Beginning inventory, February 1, 2020	$144,000	$200,000
Purchases	816,000	1,260,000
Markups, net		140,000
Sales		1,380,000
Markdowns, net		100,000

Ending Inventory at cost $