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exercise 15 in 2011 Wichita company had net sales at retail of 148 thousand dollars and were given information about the beginning inventory and cost of goods purchased at both cost in retail the above additional information is available from its records at the end of 2011 were asked to use the retail inventory method to estimate Wichitas 2011 ending inventory at cost normally when we calculate cost of goods sold we start out with beginning inventory we had the cost of goods purchased gives us cost of goods available for sale and then we would subtract ending inventory to calculate what was sold using the retail inventory method we switch this around we subtract whats sold to give us ending inventory the retail inventory method is a way to estimate the ending inventory and it uses the relationship between cost and retail beginning inventory a cost is thirty three thousand seven hundred dollars to which we add forty four thousand four hundred fourteen dollars of goods purchased these
