Trent Co. uses the retail inventory method. The following information is available for the current year.

-If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of
A) $300,000 and $430,000.
B) $300,000 and $428,000.
C) $373,000 and $550,000.
D) $378,000 and $552,000.

Question

Trent Co. uses the retail inventory method. The following information is available for the current year.
 
-If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of
A) $300,000 and $430,000. 
B) $300,000 and $428,000. 
C) $373,000 and $550,000. 
D) $378,000 and $552,000.

Quizplus · Accepted Answer

The Answer is D

Trent Co Uses the Retail Inventory Method