Garden World uses the retail method to estimate its monthly cost of goods sold and month-end inventory. At May 31, the accounting records indicate the cost of goods available for sale during the month (beginning inventory plus purchases) totaled $500,000. These goods had been priced for resale at $860,000. Sales in May totaled $420,000. The estimated inventory at May 31 is:

Respuesta :

Answer:

$255,815

Explanation:

Resale at $860,000

Less Sales May totaled $420,000

Total $440,000

cost of goods available for sale totaled $500,000÷Resale at $860,000

=0.58139

Hence:

$440,000×0.58139

=$255,815

Therefore the estimated inventory at May 31 is: $255,815