A Company Uses the Retail Inventory Method and Has the Following

question 61

Essay

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

(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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Definitions:

Microtubule

A component of the cytoskeleton in cells, composed of tubulin proteins, providing structural support and playing roles in cell division and transport.

Thylakoid Membrane

A membrane-bound compartment inside chloroplasts and cyanobacteria, the site of the light-dependent reactions of photosynthesis.

Microtubule Organizing Center

A cellular structure that regulates the nucleation and spatial distribution of microtubules.

Centrosome

An organelle that serves as the main microtubule organizing center in animal cells and plays a crucial role in the spatial distribution of cells.