A Company Uses the Retail Inventory Method and Has the Following

question 160

Essay

A company uses the retail inventory method and has the following information available concerning its most recent accounting period:
$$\begin{array} { | l | r | r | } \hline & \text { At Cost } & \text { At Retail } \\\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \\\hline \text { Net purchases } & 677,400 & 1,229,800 \\\hline \text { Sales } & & 1,200,000 \\\hline\end{array}$$ 1. What is the cost-to-retail ratio using the retail method?
2. What is the estimated cost of the ending inventory?

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Definitions:

360-Degree Appraisal

A performance review method where an employee is evaluated by their supervisor, peers, subordinates, and sometimes clients, providing a comprehensive view of their performance.

Corporate Objective

A specific goal that a business aims to achieve, guiding its internal strategy and decision-making.

Multiple-Source Evaluation

A performance appraisal method that utilizes feedback from various sources such as supervisors, peers, subordinates, and sometimes clients to assess an employee's performance.

Focal-Point Review

A performance review method focusing on significant achievements and critical areas for improvement in an employee's performance over a specific period.