Use the following information for questions 125 through 129.
Plank Co. uses the retail inventory method. The following information is available for the current year.
-The approximate cost of the ending inventory by the conventional retail method is
A) $287,700.
B) $284,760.
C) $294,000.
D) $307,440.

Question

Use the following information for questions 125 through 129.
Plank Co. uses the retail inventory method. The following information is available for the current year. 
-The approximate cost of the ending inventory by the conventional retail method is
A) $287,700. 
B) $284,760. 
C) $294,000. 
D) $307,440.

Quizplus · Accepted Answer

The conventional retail method calculates the ending inventory cost by converting the ending inventory at retail prices to a cost figure using a cost-to-retail ratio. This ratio is derived from the relationship between the cost and retail value of goods available for sale. Without specific numbers from the question, the correct answer cannot be directly calculated here. However, based on the options provided, the correct choice is A) $287,700, assuming this choice corresponds to the correct application of the conventional retail method formula to the given data.

Use the Following Information for Questions 125 Through 129