Laura's Department Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Laura's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \
\$ 87,750 & \$ 71,200 & \text { Purchases } \
23,500 & 17,000 & \text { Begining inventory } \
98,000 & & \text { Sales } \
6,500 & & \text { Net markups } \
3,000 & & \text { Net markdowns }
\end{array}$
In addition, the accounting records for Laura's disclosed that purchases returns at cost and retail were $1,950 and $4,250, respectively. What is the cost-to-retail percentage to be used for ending inventory calculations?

Question

Laura's Department Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Laura's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \  
\$ 87,750 & \$ 71,200 & \text { Purchases } \
23,500 & 17,000 & \text { Begining inventory } \
98,000 & & \text { Sales } \
6,500 & & \text { Net markups } \
3,000 & & \text { Net markdowns }
\end{array}$
 In addition, the accounting records for Laura's disclosed that purchases returns at cost and retail were $1,950 and $4,250, respectively. What is the cost-to-retail percentage to be used for ending inventory calculations?

Quizplus · Accepted Answer

The Answer of Laura's Department Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Laura's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \  
\$ 87,750 & \$ 71,200 & \text { Purchases } \
23,500 & 17,000 & \text { Begining inventory } \
98,000 & & \text { Sales } \
6,500 & & \text { Net markups } \
3,000 & & \text { Net markdowns }
\end{array}$
 In addition, the accounting records for Laura's disclosed that purchases returns at cost and retail were $1,950 and $4,250, respectively. What is the cost-to-retail percentage to be used for ending inventory calculations?

Laura's Department Store Uses the Average Cost Retail Inventory Method