Use the Following Information for the Following Question -If the Ending Inventory Is to Be Estimated Using the

question 35

Multiple Choice

Use the following information for the following question:
Tang Inc. uses the retail inventory method. The following information is available for the current year:
$\begin{array}{lll} & \text { Cost } & \text { Retail } \\\text { Beginning inventory } & \$ 117,000 & \$ 183,000 \\\text { Purchases } & 442,000 & 623,000 \\\text { Freight-in } & 8,000 & - \\\text { Employee discounts } & - & 3,000 \\\text { Net markups } & - & 22,000 \\\text { Net markdowns } & - & 30,000 \\\text { Sales } & - & 585,000\end{array}$

-If the ending inventory is to be estimated using the retail method, the calculation of the cost-to-retail ratio should be based on cost and retail of

• A) $450,000 and $645,000.
• B) $567,000 and $828,000.
• C) $559,000 and $795,000.
• D) $567,000 and $798,000.

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Definitions:

Quantitative Information

Data that is measurable and can be expressed numerically, facilitating objective analysis.

Performance Standards

Benchmarks established to measure the quality, efficiency, and effectiveness of an organization's operations, products, or services.

Corrective Action

A process or set of measures taken to rectify a problem or address a non-conformity in procedures or practices.

SWOT Analysis

A strategic planning tool that evaluates the Strengths, Weaknesses, Opportunities, and Threats of an organization or project.