Penfold's Paints uses the average cost retail method to estimate its ending inventories. The following data has been summarized for the year 2009:
Required:
Compute the cost-to-retail percentage used by Penfold's Paints.
$\begin{array}{lr}& \text { Cost } & \text { Retail } \
\text { Inventory, January 1 } && \$ 65,000 \
\text { Purchases } && 270,000 \
\text { Net markups } && 3,600 \
\text { Net markdowns } && 2,100 \
\text { Net sales } && 260,000\\text { Inventory, December } 31& \$ 55,080
\end{array}$

Question

Penfold's Paints uses the average cost retail method to estimate its ending inventories. The following data has been summarized for the year 2009:
Required:
Compute the cost-to-retail percentage used by Penfold's Paints.
 $\begin{array}{lr}& \text { Cost } & \text { Retail } \
\text { Inventory, January 1 } && \$ 65,000 \
\text { Purchases } && 270,000 \
\text { Net markups } && 3,600 \
\text { Net markdowns } && 2,100 \
\text { Net sales } && 260,000\\text { Inventory, December } 31& \$ 55,080
\end{array}$

Quizplus · Accepted Answer

The Answer of Penfold's Paints uses the average cost retail method to estimate its ending inventories. The following data has been summarized for the year 2009:
Required:
Compute the cost-to-retail percentage used by Penfold's Paints.
 $\begin{array}{lr}& \text { Cost } & \text { Retail } \
\text { Inventory, January 1 } && \$ 65,000 \
\text { Purchases } && 270,000 \
\text { Net markups } && 3,600 \
\text { Net markdowns } && 2,100 \
\text { Net sales } && 260,000\\text { Inventory, December } 31& \$ 55,080
\end{array}$

Penfold's Paints Uses the Average Cost Retail Method to Estimate