ABC company has the following information is available for June 2019: Cost Retail Inventory, 1 June $ 60,000 $ 100,000 Purchases 270,000 350,000 Purchase returns 2,500 1,500 Freight-in 5,500 | Net markups 9,500 Net markdowns 16,000 Sales 400,000 Sales discount 3,500 If ABC company uses the cost method to determine its ending inventory at cost. what is the cost to retail ratio?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC company has the following information is available for June 2019:
Cost
Retail
$ 60,000
$ 100,000
Inventory, 1 June
Purchases
270,000
350,000
Purchase returns
2,500
1,500
Freight-in
5,500
Net markups
9,500
Net markdowns
16,000
Sales
400,000
Sales discount
3,500
If ABC company uses the cost method to determine its ending inventory at cost. what is the cost to retail ratio?
Transcribed Image Text:ABC company has the following information is available for June 2019: Cost Retail $ 60,000 $ 100,000 Inventory, 1 June Purchases 270,000 350,000 Purchase returns 2,500 1,500 Freight-in 5,500 Net markups 9,500 Net markdowns 16,000 Sales 400,000 Sales discount 3,500 If ABC company uses the cost method to determine its ending inventory at cost. what is the cost to retail ratio?
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