Retail Inventory Method
The company reported the following information for the month:
|
Cost |
Retail |
|
|
Inventory, January 1 |
$20,000 |
$30,000 |
|
Purchases in January |
20,000 |
35,000 |
Sales for the month totaled $47,000. Compute the estimated cost of inventory on hand at the end of the month using the average cost assumption.