Harvey's Junk Jewelry started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2011:
(cost, retail)
beginning inventory:(15,000; 23,000)
purchases:(49000; 78000)
freight-in: (2500; 0)
purchase returns:(1700; 2600)
net markups:(0; 2000)
net markdowns:(0, 4100)
net sales:(0; 70600)
employee discounts:(0; 700)
The denominator for the current period's cost-to-retail percentage is:
A. $96,300.
B. $73,300.
C. $101,000.
D. $81,500.
Answer: B. $73,300.
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