Management calculates the cost-to-retail percentage as 60%, equal to cost of $600,000(=$100,000+$500,000) divided by retail...
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Accounting
Management calculates the cost-to-retail percentage as 60%, equal to cost of $600,000(=$100,000+$500,000) divided by retail of $1,000,000 (= $150,000+$800,000+$85,000$35,000 ). Which of the following statements is correct? Multiple Choice The cost and retail amounts should not include beginning inventory of $100,000 and $150,000, respectively. The cost-to-retail percentage should be calculated as cost of $600,000 divided by retail of $750,000 (Net sales). The retail amount should be $950,000, excluding net markups and net markdowns. The retail amount should be $1,035,000, excluding net markdowns
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