Use the retail method to estimate the value of the


Northern Industries had sales of $428,000 in the month of May. Use the retail method to estimate the value of the inventory as of May 31 given the following financial information:

(Round cost ratio to four decimal places)

Northern Industries
Financial Highlights
May 1 - May 31
    Cost Retail
Beginning Inventory   $434,719 $585,100
Net Purchases (May)   148,921 170,900
Total available for sale

a. $253,216

b. $328,199

c. $456,812

d. $230,435

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Accounting Basics: Use the retail method to estimate the value of the
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