Chapter 16.II, Problem 7RE

To determine

To calculate: The value of the ending inventory at cost on January 31 and round the cost ratio to the nearest tenth of a percent from the following information for Hot Shot Welding Supply, Inc., using the retail method.

$\begin{array}{lll}\hfill & \begin{array}{l}HotShotWeldingSupply,Inc\text{.}\\ January1-January31\end{array}\hfill & \hfill \\ \hfill & Cost\hfill & Retail\hfill \\ \text{Beginning Inventory}\hfill & \$50,000\hfill & \$120,000\hfill \\ \text{Net Purchases}\left(\text{January 1}\right)\hfill & 90,000\hfill & 216,000\hfill \\ \text{Net Sales \$188,000}\hfill & \hfill & \hfill \end{array}$