Compute the Cost of Ending Inventory Using the Retail Method

question 74

Multiple Choice

Compute the cost of ending inventory using the retail method when goods available for sale at cost are $15,000,retail is $25,000,and sales at retail equal $20,000.What will the cost ratio be? What will the ending inventory be?

• A)Cost ratio 60%; ending inventory $5,000
• B)Cost ratio 75%; ending inventory $10,000
• C)Cost ratio 70%; ending inventory $12,000
• D)Cost ratio 60%; ending inventory $3,000

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Definitions:

Nursing Instructor

A registered nurse specialized in educating and training nursing students.

Psychological Stress

A form of stress experienced as a result of perceived emotional or mental pressure.

Primary Appraisal

The initial evaluation process in which an individual assesses the significance of a stressor, determining it as a threat or challenge.

Secondary Appraisal

The process of evaluating the resources available and options for coping with a stressful situation after initially assessing the threat.