The inventory of Dollar Dress Shop at cost when the retail method is used is $117, 500.
<h3>How to find the inventory cost?</h3>
When using the Retail method to find the inventory at cost, the Beginning inventory, the purchases, and the net sales are used.
The formula for finding the cost of inventory using the retail method is:
= Beginning inventory + Purchases - Net sales
= $ 87, 500 + $ 325, 000 - $ 295, 000
= $117, 500
The inventory cost of Dollar Dress Shop with the retail method is $ 117, 500.
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