Markups and Markdowns
The company reported the following information relating to inventory for the month of April:
|
Cost |
Retail |
|
|
Inventory, January 1 |
$25,000 |
$50,000 |
|
Purchases in January |
40,000 |
70,000 |
|
Markups |
|
30,000 |
|
Markdowns |
|
(25,000) |
Sales for the month totaled $80,000. Compute the estimated cost of inventory on hand at the end of the month using the average cost assumption.