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Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of inventory at the end of each month without taking a physical inventory. Phillips has provided the following inventory data: |
| Cost Price | Retail Selling Price | |||
| Inventory of merchandise, June 30 | $ | 294,000 | $ | 495,000 |
| Purchases during July | 222,000 | 402,000 | ||
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| Goods available for sale during July | $ | 516,000 | $ | 897,000 |
| Net sales during July | $ | 370,000 | ||
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| a. |
Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation. (Round yourintermediate calculations to 4 decimal places.Omit the “$” sign in your response.) |
| Estimated cost of goods sold | $ |
| Estimated ending inventory | $ |