FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Laura's Department Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Laura's contained the following information:
In addition, the accounting records for Laura's disclosed that purchases returns at cost and retail were $1,950 and $4,250, respectively. What is the cost-to-retail percentage to be used for ending inventory calculations?
| Cost | Retail | |
| Purchases | $71,200 | $87,750 |
| Beginning inventory | 17,000 | 23,500 |
| Sales | 98,000 | |
| Net markups | 6,500 | |
| Net markdowns | 3,000 |
In addition, the accounting records for Laura's disclosed that purchases returns at cost and retail were $1,950 and $4,250, respectively. What is the cost-to-retail percentage to be used for ending inventory calculations?
A 76.8%
B 79.8%
C 78.1%
D 75.1%
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