Flynn Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:
If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost to retail ratio?
A) $177,500 ÷ $250,000
B) $177,500 ÷ $258,500
C) $175,000 ÷ $260,000
D) $177,500 ÷ $248,500

Question

Flynn Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:
 If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost to retail ratio?
A) $177,500 ÷ $250,000 
B) $177,500 ÷ $258,500 
C) $175,000 ÷ $260,000 
D) $177,500 ÷ $248,500

Quizplus · Accepted Answer

The Answer is B

Flynn Sales Company Uses the Retail Inventory Method to Value