A Company Uses the Retail Inventory Method and Has the Following

question 89

Essay

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

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Definitions:

Thermometer

A device used to measure temperature.

Perspiring

The process of sweating, a natural way for the body to regulate its temperature.

Oral Temperature

The body temperature as measured in the mouth with a thermometer, reflecting the core body temperature and used in assessing health status.

Fever

Elevated body temperature