Retail Inventory Method The following data were available from Hegge Department Store's records for the year ended December 31, 2016 At Cost At Retail Merchandise inventory, January 1, 2016 $100,000 $150,000 Purchases 341,000 470,000 Markups 10,000 Markdowns 40,000 Sales 450,000 Required Using the retail method, what is the estimate of the merchandise inventory at December 31, 2016, valued at the lower of cost or market Round the cost to retail ratio to three decimal places

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Question: Retail Inventory Method The following data were available from Hegge Department Store's records for the year ended December 31, 2016: At Cost At Retail Merchandise

Retail Inventory Method

The following data were available from Hegge Department Store's records for the year ended December 31, 2016:

	At Cost	At Retail
Merchandise inventory, January 1, 2016	$100,000	$150,000
Purchases	341,000	470,000
Markups		10,000
Markdowns		40,000
Sales		450,000

Required:Using the retail method, what is the estimate of the merchandise inventory at December 31, 2016, valued at the lower of cost or market? Round the cost-to-retail ratio to three decimal places.

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