Plank Co. uses the retail inventory method. The following information is available for the current year. Cost Retail Beginning inventory $234,000 $366,000 Purchases 885,000 1,245,000 Freight-in 15,000 Employee discounts 6,000 Net markups 45,000 Net markdowns 60,000 1,170,000 Sales revenue If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of: a. $1,134,000 and $1,656,000. b. $1,119,000 and $1,650,000. c. $900,000 and $1,290,000. d. $900,000 and $1,284,000.

Plank Co. uses the retail inventory method. The following information is available for the current year. Cost Retail Beginning inventory $234,000 $366,000 Purchases 885,000 1,245,000 Freight-in 15,000 Employee discounts 6,000 Net markups 45,000 Net markdowns 60,000 1,170,000 Sales revenue If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of: a. $1,134,000 and $1,656,000. b. $1,119,000 and $1,650,000. c. $900,000 and $1,290,000. d. $900,000 and $1,284,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 8MC: At December 31, 2019, the following information was available from Crisford Companys books: Sales...

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