Answer:
$70,765
Explanation:
cost retail
beginning inventory $64,500 $123,000 52.44%
net purchases $315,000 $483,000 65.22%
sales during the first six months totaled $493,000.
we must first determine the cost of goods sold:
COGS = [(cost beginning inventory + cost net purchases) / (retail beginning inventory + retail net purchases)] x total sales = [($64,500 + $315,000) / ($123,000 + $483,000)] x $493,000 = ($379,500 / $606,000) x $493,000 = $308,735
ending inventory = cost beginning inventory + cost net purchases - COGS = $64,500 + $315,000 - $308,735 = $70,765
