DK Super Stores Inc. uses the average cost retail method to estimate its ending inventory. Information at June 30, 2009, is as follows:
Required:
Compute the cost-to-retail percentage used by DK.
$$\begin{array} { l c c }
& \text { Cost } & \text { Retail } \
\text { Beginning inventory } & & \$ 105,000 \
\text { Net purchases } & & 375,000 \
\text { Net sales } & & 380,000 \
\text { Ending inventory } & \$ 64,000
\end{array}$$

Question

DK Super Stores Inc. uses the average cost retail method to estimate its ending inventory. Information at June 30, 2009, is as follows:
Required:
Compute the cost-to-retail percentage used by DK.
 $$\begin{array} { l c c } 
& \text { Cost } & \text { Retail } \
\text { Beginning inventory } & & \$ 105,000 \
\text { Net purchases } & & 375,000 \
\text { Net sales } & & 380,000 \
\text { Ending inventory } & \$ 64,000
\end{array}$$

Quizplus · Accepted Answer

The Answer of DK Super Stores Inc. uses the average cost retail method to estimate its ending inventory. Information at June 30, 2009, is as follows:
Required:
Compute the cost-to-retail percentage used by DK.
 $$\begin{array} { l c c } 
& \text { Cost } & \text { Retail } \
\text { Beginning inventory } & & \$ 105,000 \
\text { Net purchases } & & 375,000 \
\text { Net sales } & & 380,000 \
\text { Ending inventory } & \$ 64,000
\end{array}$$