The Latisha Department Store Uses the Average Cost Retail Inventory

question 19

Multiple Choice

The Latisha Department Store uses the average cost retail inventory method to determine its ending inventory.The accounting records for the current year for Latisha contained the following information: $\begin{array}{lcc}&\text { Cost }&\text { Retail }\\\text { Purchases } & \$ 61,200 & \$ 85,000 \\\text { Beginning inventory } & 17,000 & 25,000 \\\text { Sales } & & 75,700 \\\text { Net markups } & & 7,500 \\\text { Net markdowns } & & 2,500\end{array}$ In addition, the accounting records for Latisha disclosed that purchases returns at cost and retail were $1, 800 and $4, 300, respectively.What is the cost-to-retail percentage to be used for ending inventory calculations?

• A)66.6%
• B)67.5%
• C)68.0%
• D)69.0%

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Definitions:

Dopamine

A neurotransmitter involved in many functions, including reward and pleasure, motor control, and the regulation of mood, with significant roles in behavior and cognition.

Phobic Responses

Excessive and irrational fear reactions to a specific object or situation, significantly impacting an individual's daily life.

Classical Conditioning

The phenomenon of learning via repeated combinations of two stimuli, causing a response that was first caused by the second stimulus to end up being caused by the first stimulus.

Operant Conditioning

A process in which learning occurs by modifying the strength of a behavior using rewards or punishments.