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Question - Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2016 are as follows:
CostRetail Beginning inventory$18,000 $26,000 Purchases 108,600 171,000 Freight-in 1,920 Purchase returns 7,000 10,000 Net markups 9,000 Net markdowns 6,000 Normal spoilage 4,800 Net sales 158,000
Required: Estimate the ending inventory and cost of goods sold for 2016, applying the conventional retail method.
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