The Following Information Is Available for the Past Year for a Retail

question 50

Multiple Choice

The following information is available for the past year for a retail store: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 121,000 \\\hline \text { Sales Returns } & \$ 1,000 \\\hline \text { Markups } & \$ 11,000 \\\hline \text { Markup cancellations } & \$ 1,000 \\\hline \text { Markdowns } & \$ 9,000 \\\hline \text { Purchases (at cost) } & \$ 40,000 \\\hline \text { Purchases (at retail) } & \$ 90,000 \\\hline \text { Beginning inventory (at cost) } & \$ 32,000 \\\hline \text { Beginning inventory (at retail) } & \$ 42,000 \\\hline\end{array}$$
What is the cost-to-retail ratio to estimate the cost of ending inventory using the conventional retail method? (Round cost-to-retail ratios to four decimal places.)

• A) 50.7%
• B) 76.19%
• C) 54.55%
• D) 59.02%

---

Definitions:

μ F

Microfarad, a unit of capacitance equal to one millionth of a farad, used to measure the storage of electrical charge.

Dielectric Stress

The molecular stress placed on a dielectric material proportional to the level of applied voltage.

Dielectric

An electric insulator.

Voltage Difference

The difference in electric potential between two points in an electrical circuit.