The Cherry Department Store uses the average cost retail inventory method to determine its ending...
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Accounting
The Cherry Department Store uses the average cost retail inventory method to determine its ending inventory. The accounting records for the current year for Cherry contained the following information:
Cost
Retail
Purchases
$61,200
$85,000
Beginning inventory
15,895
25,000
Sales
75,700
Net markups
7,500
Net markdowns
2,500
In addition, the accounting records for Cherry disclosed that purchases returns at cost and retail were $1,900 and $3,600, respectively. What is the cost-to-retail percentage to be used for ending inventory calculations?
a.
66.6%
b.
67.5%
c.
68.0%
d.
69.0%
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