Apparal Co. has the following information for March 2021: Beginning inventory (at cost) = 50,000 Beginning inventory (at retail) = 75.200 Sales = 120,000 Net markdowns = 10,500 Freight on purchases = 3,500 Purchases (at cost) = 63,000 Purchases (at retail) = 95,000 Purchase discount (at cost) = 4,000 Normal spoilage and breakage =7,000 Sales returns = 4,000 Net markups = 15,000 Purchase discount (at retail) = 6,000 %3D Assume that Apparal Co. uses the conventional retail method to determine the cost of ending inventory. What is the cost-to-retail ratio?

Apparal Co. has the following information for March 2021: Beginning inventory (at cost) = 50,000 Beginning inventory (at retail) = 75.200 Sales = 120,000 Net markdowns = 10,500 Freight on purchases = 3,500 Purchases (at cost) = 63,000 Purchases (at retail) = 95,000 Purchase discount (at cost) = 4,000 Normal spoilage and breakage =7,000 Sales returns = 4,000 Net markups = 15,000 Purchase discount (at retail) = 6,000 %3D Assume that Apparal Co. uses the conventional retail method to determine the cost of ending inventory. What is the cost-to-retail ratio?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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