In: Accounting
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 |