The following information relates to CEE Company: (Refer to image).Assume that the company uses the average cost approach. What is thecost ratio? Express your answer in percentage and round up to twodecimal points. *RetailCost500,000.00Inventory, 12/31/2021725,000.00Purchases1,285,000.002,220,000.00Purchase returns20,000.0035,000.00Purchase discounts30,000.00Sales (after employee discounts)2,450,000.00Sales returns125,000.00Sales allowances70,000.00Mark-upsMark-up cancellations160,000.0070,000.00Mark-down65,000.00Mark-down cancellations32,000.00Freight inEmployee discountsNormal loss from breakage65,000.0015,000.0010,000.00

The average cost method is given as,

Answered: Cost 500,000.00 1,285,000.00

Business

Accounting

Cost 500,000.00 1,285,000.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following information relates to CEE Company: (Refer to image).
Assume that the company uses the average cost approach. What is the
cost ratio? Express your answer in percentage and round up to two
decimal points. *
Retail
Cost
500,000.00
Inventory, 12/31/2021
725,000.00
Purchases
1,285,000.00
2,220,000.00
Purchase returns
20,000.00
35,000.00
Purchase discounts
30,000.00
Sales (after employee discounts)
2,450,000.00
Sales returns
125,000.00
Sales allowances
70,000.00
Mark-ups
Mark-up cancellations
160,000.00
70,000.00
Mark-down
65,000.00
Mark-down cancellations
32,000.00
Freight in
Employee discounts
Normal loss from breakage
65,000.00
15,000.00
10,000.00

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