Average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $64,500 and $123,000, net purchases at cost and retail were $315,000 and $483,000, and sales during the first six months totaled $493,000. The estimated inventory at June 30, 2021, would be:

$70,765

Explanation:

                                             cost                         retail

beginning inventory       $64,500                  $123,000        52.44%

net purchases               $315,000                  $483,000        65.22%

sales during the first six months totaled $493,000.

we must first determine the cost of goods sold:

COGS = [(cost beginning inventory + cost net purchases) / (retail beginning inventory + retail net purchases)] x total sales = [($64,500 + $315,000) / ($123,000 + $483,000)] x $493,000 = ($379,500 / $606,000) x $493,000 = $308,735

ending inventory = cost beginning inventory + cost net purchases - COGS = $64,500 + $315,000 - $308,735 = $70,765

and whats your questoin

answer; capital structure decision;