Caroline's Music Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Caroline's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \
\$ 137,750 & \$ 108,000 & \text { Purchases } \
34,000 & 28,000 & \text { Beginning inventory } \
156,900 & & \text { Sales } \
21,500 & & \text { Net markups } \
7,500 & & \text { Net markdowns } \
14,500 & & \text { Employee discounts }
\end{array}$
What is the cost-to-retail percentage to be used for ending inventory calculations?

Question

Caroline's Music Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Caroline's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \  
\$ 137,750 & \$ 108,000 & \text { Purchases } \
34,000 & 28,000 & \text { Beginning inventory } \
156,900 & & \text { Sales } \
21,500 & & \text { Net markups } \
7,500 & & \text { Net markdowns } \
14,500 & & \text { Employee discounts }
\end{array}$
 What is the cost-to-retail percentage to be used for ending inventory calculations?

Quizplus · Accepted Answer

The Answer of Caroline's Music Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Caroline's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \  
\$ 137,750 & \$ 108,000 & \text { Purchases } \
34,000 & 28,000 & \text { Beginning inventory } \
156,900 & & \text { Sales } \
21,500 & & \text { Net markups } \
7,500 & & \text { Net markdowns } \
14,500 & & \text { Employee discounts }
\end{array}$
 What is the cost-to-retail percentage to be used for ending inventory calculations?

Caroline's Music Store Uses the Average Cost Retail Inventory Method