Based on the following information(in scrambled order), compute the ending inventory at cost using: the conventional retail method and (2) the cost retail method. You should round the cost-to-retail ratios to four decimal places, e.g. 0.345678~0.3457 or 34.57%.In your final answers, separately indicate (a) ending inventory at retail, (b) cost-to-retail ratio, and (c) ending inventory at cost. Summarize your answers on the bottom of page.

	At cost	At retail
Inventory, Beginning	$ 21,400	$ 56,000
Markup cancellations		700
Freight-in	1,900
Markdowns		7,500
Markdowns cancellations		1200
Sales		53,400
Purchases	37,520	82,350
Normal damage		2,500
Mark-ups		5,800

Answer: (You should also provide your work to support your answers)

 

Method	(a) Ending inventory at retail	(b) Cost-to-retail ratio	(c) Ending inventory at cost
(1) Conventional retail
(2) Costretail

Answer rating: 100% (QA)

Cost to retail ratio Total cost of goods available for sale divided by the ... View the full answer