Crane Sales Company Uses the Retail Inventory Method to Value

question 107

Multiple Choice

Crane Sales Company uses the retail inventory method to value its merchandise inventory.The following information is available for the current year: If the ending inventory is to be valued at the lower-of-cost-or-net realizable value, what is the cost to retail ratio?

• A)$177,500 ÷ $250,000
• B)$177,500 ÷ $258,500
• C)$175,000 ÷ $260,000
• D)$177,500 ÷ $248,500