Cost 500,000.00 1,285,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:The following information relates to CEE Company: (Refer to image).
Assume that the company uses the average cost approach. What is the
cost ratio? Express your answer in percentage and round up to two
decimal points. *
Retail
Cost
500,000.00
Inventory, 12/31/2021
725,000.00
Purchases
1,285,000.00
2,220,000.00
Purchase returns
20,000.00
35,000.00
Purchase discounts
30,000.00
Sales (after employee discounts)
2,450,000.00
Sales returns
125,000.00
Sales allowances
70,000.00
Mark-ups
Mark-up cancellations
160,000.00
70,000.00
Mark-down
65,000.00
Mark-down cancellations
32,000.00
Freight in
Employee discounts
Normal loss from breakage
65,000.00
15,000.00
10,000.00
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