Wall -to- wall records' april 1 inventory had a cost of $48,000 and a retail value of $70,000. during april, net purchases cost $210,000 with a retail value of $390,000. net sales at retail for wall-to-wall records for april were $280,000. calculate the cost of ending inventory using the retail inventory method. (round to the nearest hundredth percent.)

The correct answer is that the cost of the ending inventory using the retail inventory method is US$ 100,962

Explanation:

Wall-to-Wall Records

                                        Cost          Retail

Beginning Inventory$ 48,000$ 70,000

Purchases                     $ 210,000       $ 390,000

Cost of Goods Available for Sale$ 258,000 $ 460,000

Cost to Retail Ratio

= $ 258,000 ÷ $ 460,000

= 0.5609 = 56.09%

                                                    Cost            Retail

Cost of Goods Available for Sale$ 258,000   $460,000

− Sales                                                                 $ 280,000

Ending Inventory                                          $ 180,000

× Cost to Retail Ratio                                    0.5609

Ending Inventory                           $ 100,962

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