Use the Following Information for Questions

question 61

Multiple Choice

Use the following information for questions.
Tang Inc.uses the retail inventory method.The following information is available for the current year:
-If the ending inventory is to be valued at approximately lower of average cost and market, the calculation of the cost ratio should be based on cost and retail of

• A)$450,000 and $645,000.
• B)$450,000 and $642,000.
• C)$559,000 and $825,000.
• D)$567,000 and $828,000.

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Definitions:

Proportions

Measures that express the relationship of a part to the whole, typically in the form of a fraction or percentage.

Ordinal Data

Ordinal data is a type of categorical data with a set order or scale, but without a standardized difference between the categories, such as rankings or levels of satisfaction.

Ordered

Arranged or organized in a sequence according to some specific rule or set of rules.

Ranked

The process or result of ordering or classifying entities based on criteria or measurements to establish a hierarchy or priority.