Compute the Cost of Ending Inventory Using the Retail Method

question 25

Multiple Choice

Compute the cost of ending inventory using the retail method when goods available for sale at cost are $15,000,retail is $25,000,and sales at retail equal $20,000.What will the cost ratio be? What will the cost of ending inventory be?

• A)Cost ratio 60%;ending inventory $5,000
• B)Cost ratio 75%;ending inventory $10,000
• C)Cost ratio 70%;ending inventory $12,000
• D)Cost ratio 60%;ending inventory $3,000

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Definitions:

Embodied Attitudes

The concept that beliefs and feelings can be influenced or even determined by bodily conditions and states.

Body Movements

Physical actions or gestures made by the body, often studied in psychology to understand emotion, communication, and behavior.

Leaning Forward

The physical act or metaphorical concept of showing interest or eagerness towards something by inclining forward.

Neutral Object

An item or entity that does not inherently carry positive or negative connotations or provoke strong emotions.