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A Company Uses the Retail Inventory Method and Has the Following

question 61

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A company uses the retail inventory method and has the following information available concerning its most recent accounting period:
 At Cost  At Retail  Beginning-of-period inventory $148,600$245,200 Net purchases 677,4001,229,800 Sales 1,200,000\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}

(a) What is the cost-to-retail ratio using the retail method?
(b) What is the estimated cost of the ending inventory?


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The process of converting information or data into a secure format to prevent unauthorized access, ensuring confidentiality.

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Transactions or commerce conducted directly between companies, typically involving bulk transactions.

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