A Company Uses the Retail Inventory Method and Has the Following

Essay

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