Answer:
$78,300
Explanation:
COMPUTATION OF GOODS AVAILABLE FOR SALE AT COST
$
Beginning inventory 80,000
Purchases <u> 65,000 </u>
Goods available <u> 145,000 </u>
COMPUTATION OF GOODS AVAILABLE FOR SALE AT RETAIL PRICE
$
Beginning inventory 130,000
Purchases <u> 120,000 </u>
Goods available <u> 250,000 </u>
Ending inventory at cost = (Cost/Retail Ratio) x Year-end Inventory at retail price
=($145,000/$250,000) x $135,000
= 58% x $135,000
= $78,300
