The April 1 inventory of Alexis Stores had a cost of $918,000 and a retail value of

Question:

The April 1 inventory of Alexis Stores had a cost of $918,000 and a retail value of $1,340,000. During April, merchandise was purchased for $1,069,000 and marked to sell for $1,676,000. Freight in was $18,000. April sales totaled $2,150,000.

INSTRUCTIONS

1. Compute the retail value of the ending inventory as of April 30.

2. Compute the approximate cost of the ending inventory.

3. Compute the cost of goods sold during April.

Analyze:

What is the gross profit on sales for the period ending April 30?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...