Multiple Choice
Compute the cost of ending inventory using the retail method when goods available for sale at cost are $10,000, retail is $27,000, and sales at retail equal $23,000. What will the cost ratio be? What will the cost of ending inventory be?
A) Cost ratio 37%; ending inventory $4,000
B) Cost ratio 43%; ending inventory $17,000
C) Cost ratio 85%; ending inventory $8,520
D) Cost ratio 37%; ending inventory $1,480
Correct Answer:
Verified
Correct Answer:
Verified
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