137. On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method:
Cost
Retail
March 1
Merchandise Inventory
$250,000
$350,000
March 1-31
Purchases (net)
850,000
1,650,000
Sales (net)
Ratio of cost to retail price: 55% (1,100,000/2,000,000)
138. On the basis of the following data, determine the estimated cost of the inventory as of March 31 by the retail method, presenting details of the computation in good order.
Mar. 1
Merchandise inventory
$310,000
$550,000
1-31
307,250
515,000
400,000
139. The following data were taken from Bowman Inc.
Cost of Goods Sold
$864,000
Inventory, end of year
68,000
Inventory, beginning of the year
82,000
Determine the inventory turnover ratio and the number of days’ sales in inventory for Bowman Inc. Round to two decimal places.
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