Using the Retail Method, Calculate the Value of Ending Inventory

question 28

Short Answer

Using the retail method, calculate the value of ending inventory at cost for Morse Co. Round the cost ratio to the nearest hundredth.
$$\begin{array} { | l | l | l | } \hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning Inventory } & \$ 130,000 & \$ 190,000 \\\hline \text { Purchases during year } & \$ 90,000 & \$ 135,000 \\\hline \text { Sales for year: } \$ 140,000 & & \\\hline\end{array}$$