Gordon Company uses the retail method of inventory costing. The retail value of the ending inventory is $325,000. If the ratio of cost to retail price is 66%, what is the amount of the ending inventory to be reported on the financial statements

$214,500.

Explanation:

Inventories are expected to be  reported at the lower of cost and net realizable value. This goes in line with appropriate accounting standard, IAS 2.

In this question,

The cost of the inventory is given as 66% of retail value

= 66% ×  $325,000

=  $214,500.

Retail value = $325,000

Sinec the cost value is lower than retail value, hence the inventory is to be reported at

$214,500.

The ending inventory of $214,500 to be reported on the financial statements.

Explanation:

Retail value is the value at which an asset will be sold. Cost to retail value ratio is the ratio of cost of inventory to retail price of that inventory item.

We can calculate the Inventory value reported on the financial statement as follow

Cost to retail value = Cost of Inventory / Retail value of Inventory

66% = Cost of Inventory / $325,000

Cost of Inventory = $325,000 x 66% = $214,500

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

arrowright

anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

arrowright

nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

arrowright