Reference no: EM132917341

Dan's Threads uses the retail inventory method for its two departments, Men's Clothes and Women's Clothes. The following information for each department is obtained.

                                                      Item Men's Dept.                 Women's Dept.
Beginning inventory at cost             $ 40,000                       $ 50,000
Cost of goods purchased at cost         160,160                       175,700
Net sales                                         192,000                       245,000
Beginning inventory at retail                 58,000                         65,000
Cost of goods purchased at retail           220,000                        240,000

Instructions:

Problem 1: Compute the estimated cost of the ending inventory for each department under the retail inventory method.