Retail Method
Omega Signs Uses the Retail Method to Estimate

Retail method
Omega Signs uses the retail method to estimate ending inventory in its monthly financial statements. The following information is available for the month ended April 30:
Using the retail method:
$$\begin{array} { | l | r | r | } \hline & \text { Cost } & { \text { Retail } } \\\hline \text { Sales } & & \$ 750,000 \\\hline \text { Inventory, April 1 } & \$ 300,000 & \$ 500,000 \\\hline \text { Net purchases } & \underline { 250,000 } &\underline { 500,000} \\\hline \text { Goods available for sale } & \$ 550,000 & \$ 1,000,000 \\\hline\end{array}$$ (a) Determine the cost ratio that should be used in estimating the Inventory at April 30. $\underline{\quad\quad}$ %
(b) Estimate the cost of the inventory at April 30.$ $\underline{\quad\quad}$

(c) Estimate the cost of goods sold for April. $ $\underline{\quad\quad}$