Galeries Morvane applies the retail method department by department. At 31 December 20X1, the inventory of the delicatessen department is valued at 130,000 at selling prices, with an appropriate gross margin percentage of 30 %; that of the perfume department is valued at 70,000, with a percentage of 55 %. These percentages, determined by the entity, take markdowns into account. The average margin of the whole store is 38%. Calculate the cost of each department's inventory and the total cost.
- Delicatessen: inventory at selling prices
- 130,000
- Delicatessen: gross margin percentage
- 30 %
- Perfume: inventory at selling prices
- 70,000
- Perfume: gross margin percentage
- 55 %