Exercise 8.10 estimating inventory by the retail method 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 $300,000 $500,000 purchases during july 222,000 400,000 goods available for sale during july $522,000 $900,000 net sales during july $600,000 estimate the cost of goods sold and the cost of the july 31 ending inventory using the retail method of evaluation. was the cost of phillips’s inventory, as a percentage of retail selling prices, higher or lower in july than it was in june? explain.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

250 tickets needs to be sold.