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In: Accounting

Sandhill Co. uses the retail inventory method. The following information is available for the current year....

Sandhill Co. uses the retail inventory method. The following information is available for the current year.

Cost

Retail

Beginning inventory

$ 323000

$476000

Purchases

1150000

1680000

Freight-in

18000

Employee discounts

8600

Net markups

70000

Net markdowns

78000

Sales revenue

1620000


The approximate cost of the ending inventory by the conventional retail method is (Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.)

$769481.
$401000.
$350595.

$519400.

Sunland Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:

Cost

Retail

Beginning inventory

$ 36000

$ 51000

Purchases

250000

320000

Freight-in

3100

Net markups

9100

Net markdowns

13000

Employee discounts

1000

Sales revenue

265000


If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost-to-retail ratio?

$286000 ÷ $384000
$289100 ÷ $380100
$289100 ÷ $367100
$289100 ÷ $371000

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