Andover Stores Uses the Average Cost Retail Method to Estimate

Essay

Andover Stores uses the average cost retail method to estimate its ending inventory. Information as of June 30, 2009, is as follows:
Required:
Use the retail method to estimate the June 30, 2009, inventory.
$\begin{array}{lrr}&\text { Cost } & \text { Retail }\\\text { Beginning inventory } & \$ 45,000 & \$ 82,000 \\\text { Net purchases } & 245,000 & 418,000 \\\text { Net sales } & & 400,000\end{array}$