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:
$$\begin{array} { | l | r | r | } \hline & \text { At Cost } & \text { At Retail } \\\hline \text { Beginning-of-period inventory } & \$ 148,600 & \$ 245,200 \\\hline \text { Net purchases } & 677,400 & 1,229,800 \\\hline \text { Sales } & & 1,200,000 \\\hline\end{array}$$
1.What is the cost-to-retail ratio using the retail method?
2.What is the estimated cost of the ending inventory?