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Garrison Company uses the retail method of inventory costing. It started the year with an inventory...

Garrison Company uses the retail method of inventory costing. It started the year with an inventory that had a retail cost of $30,351.00. During the year they purchased an inventory with a retail cost of $758,124.00. After performing a physical inventory, they calculated their inventory cost at retail to be $73,202.00. The mark up is 100% of cost. Determine the ending inventory at its estimated cost.

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Answer #1
Ending Inventory at cost = $                               36,601
Workings:
Ending Inventory at retail = $                               73,202
Ending Inventory at cost = ($73202 X 100% / 200%)
= $                               36,601
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