Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:

Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:



(cost, retail)
beginning inventory:(112,000; 191,000)
net purchases:(402,000; 703,000)
net markups: (0; 43,000)
net markdowns: (0; 21,000)
net sales: (0; 685,000)

The conventional cost-to-retail percentage (rounded) is:



A. 54.9%.
B. 58.9%.
C. 53.6%.
D. 70.6%.


Answer: A. 54.9%.


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