In the retail inventory method, the cost to retail ratio is equal to the cost of goods sold divided by the retail price of the goods sold.

Question

Quizplus · Accepted Answer

In the retail inventory method, the cost to retail ratio is calculated by dividing the cost of goods available for sale by the retail price of goods available for sale, not by dividing the cost of goods sold by the retail price of goods sold.

In the Retail Inventory Method, the Cost to Retail Ratio