Harlingen Store Uses the Retail Method and Has the Following

Essay

Harlingen Store uses the retail method and has the following information available concerning their most recent accounting period:
$$\begin{array} { | l | r | r | } \hline & \text { At Cast } & \text { At Retail } \\\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \\\hline \text { Net purchases } & 677,400 & 1,229,800 \\\hline \text { Sales } & 1,200,000 & \\\hline\end{array}$$ (1) What is the cost ratio using the retail method? (2) What is the estimated cost of the ending inventory?