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Garrison Company uses the retail method of inventory costing. It started the year with an inventory that had a retail cost of $45,000. During the year, Garrison purchased an inventory with a retail sales value of $300,000. After performing a physical inventory, Garrison calculated the inventory at retail to be $80,000. The markup is 100% of cost. Determine the ending inventory at its estimated cost.

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aaronclark73

Answer:1.08

Step-by-step explanation:just multiply it together

Answer:

The answer is $40000.

Step-by-step explanation:

The inventory that had a retail cost of $45,000.

During the year, Garrison purchased an inventory with a retail sales value of $300,000.

Garrison calculated the inventory at retail to be $80,000.

The markup is 100% of cost.

This means the cost is doubled.

The actual inventory is [tex]\frac{80000}{2}=40000[/tex] dollars

Therefore, the ending inventory at its estimated cost is $40,000.

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