Pancho Steinberg's Uses the Retail Inventory Method

Multiple Choice

Pancho Steinberg's uses the retail inventory method. A formula not used by the company is:

A) Goods Available for Sale at Retail - Net Sales = Ending Inventory at Retail.
B) Goods Available for Sale at Cost / Goods Available for Sale at Retail = Cost-to-Retail Ratio.
C) Goods Available for Sale at Retail - Goods Available for Sale at Cost = Retail Price of Goods Sold.
D) Ending Inventory at Retail X Cost-to-Retail Ratio = Estimated Cost of Ending Inventory.