Answer:
See below
Explanation:
a. Estimated ending inventory and cost of goods sold for March
Costs Retail
Beginning inventory $44,000 $66,000
Add:
Net purchases $211,000 $404,000
Less:
Purchase return ($6,000) ($8,000)
Freight in $21,396 $0
Net markups $0 $6,200
Goods available for sale $270,396 $468,200
Less:
Net mark down $0 ($3,900)
Goods available for sale( after markup) $270,396 $464,300
b. Cost to retail percentage using average cost method
= [(Goods available for sale at cost(after markup / Goods available for sale at retail (after markup) ] × 100
= [($270,396 / $464,300)] × 100
= 58.24%
