A company uses the retail inventory method and has the following information available concerning its most recent accounting period:
$\begin{array}{|l|r|r|}
\hline & \text { At Cost } & { \text { At Retail } } \
\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \
\hline \text { Net purchases } & 677,400 & 1,229,800 \
\hline \text { Sales } & & 1,200,000 \
\hline
\end{array}$
(a) What is the cost-to-retail ratio using the retail method?
(b) What is the estimated cost of the ending inventory?

Question

A company uses the retail inventory method and has the following information available concerning its most recent accounting period:
 $\begin{array}{|l|r|r|}
\hline & \text { At Cost } & { \text { At Retail } } \
\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \
\hline \text { Net purchases } & 677,400 & 1,229,800 \
\hline \text { Sales } & & 1,200,000 \
\hline
\end{array}$ 
(a) What is the cost-to-retail ratio using the retail method?
(b) What is the estimated cost of the ending inventory?

Quizplus · Accepted Answer

The Answer of A company uses the retail inventory method and has the following information available concerning its most recent accounting period:
 $\begin{array}{|l|r|r|}
\hline & \text { At Cost } & { \text { At Retail } } \
\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \
\hline \text { Net purchases } & 677,400 & 1,229,800 \
\hline \text { Sales } & & 1,200,000 \
\hline
\end{array}$ 
(a) What is the cost-to-retail ratio using the retail method?
(b) What is the estimated cost of the ending inventory?

A Company Uses the Retail Inventory Method and Has the Following