Multiple Choice
Compute the cost of ending inventory using the retail method when goods available for sale at cost are $15,000,retail is $25,000,and sales at retail equal $20,000.What will the cost ratio be? What will the ending inventory be?
A) Cost ratio 60%; ending inventory $5,000
B) Cost ratio 75%; ending inventory $10,000
C) Cost ratio 70%; ending inventory $12,000
D) Cost ratio 60%; ending inventory $3,000
Correct Answer:
Verified
Correct Answer:
Verified
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