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.
$$\begin{array} { | l | l | l | } \hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning Inventory } & \$ 130,000 & \$ 190,000 \\\hline \text { Purchases during year } & \$ 90,000 & \$ 135,000 \\\hline \text { Sales for year: } \$ 140,000 & & \\\hline\end{array}$$

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Definitions:

Neurons

Nerve cells that transmit information through electrical and chemical signals in the body’s nervous system.

Blood Clot

A mass formed from platelets and fibrin in the blood to stop bleeding by clogging broken blood vessels.

Fibrinogen

A blood plasma protein that's converted into fibrin in the blood clotting process, playing a key role in wound healing.

Thrombin

Enzyme that is involved in blood clotting; acts on fibrinogen molecules to produce fibrin.