Question - Capital City Corporation uses the conventional retail inventory method to determine its ending inventory at cost. The following information is available for the current year:
|
|
Cost
|
Retail
|
|
Beginning Inventory
|
$350,000
|
$500,000
|
|
Purchases
|
$1,600,000
|
$2,440,000
|
|
Net Markups
|
|
$60,000
|
|
Net Markdowns
|
|
$30,000
|
|
Sales
|
|
$2,350,000
|
Capital City determines that the cost-to-retail ratio is 65%. What is the ending inventory at cost?
$620,000
$350,000
$470,000
$403,000