Under the retail inventory method, if the cost-to-retail ratio is 60% and ending inventory at retail is
$105,000, then estimated ending inventory is $42,000.

Name: Under the retail inventory method, if the cost-to-retail ratio is 60% and ending inventory at retail is $105,000, then estimated ending inventory is $42,000.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

The estimated ending inventory at cost would be $63,000 because you multiply the ending inventory at retail ($105,000) by the cost-to-retail ratio (60%), not $42,000.

Under the Retail Inventory Method, If the Cost-To-Retail Ratio Is