Jones Co. uses the retail inventory method. Given the following data, what is the ending inventory at cost? Sales at retail $80,000, net purchases at cost $41,200, net purchases at retail $66,800, beginning inventory at cost $22,400, beginning inventory at retail $36,800. Round cost ratio to the nearest whole percent.
A)$23,600
B)$63,600
C)$14,936
D)$14,396
E)None of these

Question

Quizplus · Accepted Answer

The cost ratio is 62% ($41,200/$66,800). The ending inventory at cost is $14,396 ($23,600 x 62%).

Jones Co Uses the Retail Inventory Method