The Latisha Department Store uses the average cost retail inventory method to determine its ending inventory.The accounting records for the current year for Latisha contained the following information: $\begin{array}{lcc}&\text { Cost }&\text { Retail }\
\text { Purchases } & \$ 61,200 & \$ 85,000 \
\text { Beginning inventory } & 17,000 & 25,000 \
\text { Sales } & & 75,700 \
\text { Net markups } & & 7,500 \
\text { Net markdowns } & & 2,500
\end{array}$ In addition, the accounting records for Latisha disclosed that purchases returns at cost and retail were $1, 800 and $4, 300, respectively.What is the cost-to-retail percentage to be used for ending inventory calculations?

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The Answer of The Latisha Department Store uses the average cost retail inventory method to determine its ending inventory.The accounting records for the current year for Latisha contained the following information: $\begin{array}{lcc}&\text { Cost }&\text { Retail }\
\text { Purchases } & \$ 61,200 & \$ 85,000 \
\text { Beginning inventory } & 17,000 & 25,000 \
\text { Sales } & & 75,700 \
\text { Net markups } & & 7,500 \
\text { Net markdowns } & & 2,500
\end{array}$ In addition, the accounting records for Latisha disclosed that purchases returns at cost and retail were $1, 800 and $4, 300, respectively.What is the cost-to-retail percentage to be used for ending inventory calculations?

The Latisha Department Store Uses the Average Cost Retail Inventory