The Following Data Concerning the Retail Inventory Method Are Taken

question 98

Essay

The following data concerning the retail inventory method are taken from the financial records of a small company. $\begin{array}{|l|l|l|}\hline & \text { Cost } & \text { Retail } \\\hline \text { Beginning inventory } & \$ 37,200 & \$ 60,000 \\\hline \text { Purchases } & 182,000 & 308,000 \\\hline \text { Freight-in } & 2,800 & -\cdots \\\hline \text { Net mark-ups } & -\cdots & 2,000 \\\hline \text { Net markdowns } & -\cdots & 3,480 \\\hline \text { Sales } & -\cdots & 313,520 \\\hline\end{array}$
(a) The ending inventory at retail should be: $_______________.
(b) If the ending inventory is to be valued at approximately the lower-of-cost-or-market, FIFO basis, the calculation of the cost to retail ratio should be based on goods available for sale at (1) cost and (2) retail, respectively, of: $________________ and $_________________.

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Definitions:

Gender Insensitivity

The lack of awareness or consideration for the differences and equality issues between genders, often resulting in discriminatory practices.

Inductive

A reasoning process that involves making generalizations based on specific observations or cases.

Deductive

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Qualitative

Pertaining to or concerning the quality of something rather than its quantity. This approach often involves non-numerical analysis of data in research.