Harlingen Store uses the retail method and has the following information available concerning their most recent accounting period:
$$\begin{array} { | l | r | r | }
\hline & \text { At Cast } & \text { At Retail } \
\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \
\hline \text { Net purchases } & 677,400 & 1,229,800 \
\hline \text { Sales } & 1,200,000 & \
\hline
\end{array}$$ (1) What is the cost ratio using the retail method? (2) What is the estimated cost of the ending inventory?

Question

Harlingen Store uses the retail method and has the following information available concerning their most recent accounting period:
 $$\begin{array} { | l | r | r | } 
\hline & \text { At Cast } & \text { At Retail } \
\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \
\hline \text { Net purchases } & 677,400 & 1,229,800 \
\hline \text { Sales } & 1,200,000 & \
\hline
\end{array}$$ (1) What is the cost ratio using the retail method? (2) What is the estimated cost of the ending inventory?

Quizplus · Accepted Answer

The Answer of Harlingen Store uses the retail method and has the following information available concerning their most recent accounting period:
 $$\begin{array} { | l | r | r | } 
\hline & \text { At Cast } & \text { At Retail } \
\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \
\hline \text { Net purchases } & 677,400 & 1,229,800 \
\hline \text { Sales } & 1,200,000 & \
\hline
\end{array}$$ (1) What is the cost ratio using the retail method? (2) What is the estimated cost of the ending inventory?

Harlingen Store Uses the Retail Method and Has the Following