Apply the Retail Method to the Following Company Information to Calculate

Essay

Apply the retail method to the following company information to calculate the cost of the ending inventory for the current period.
$$\begin{array} { | l | r | r | } \hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning inventory } & \$ 20,224 & \$ 31,600 \\\hline \text { Net purchases } & 59,508 & 97,000 \\\hline \text { Sales } & & 89,000 \\\hline\end{array}$$