Marilee's Electronics uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is available from the company records for the month of June 2011:

Marilee's Electronics uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is available from the company records for the month of June 2011:



(cost, retail)
beginning inventory: ( 80,000; 130,000)
net purchases: (261,000; 500,000)
net markups: (0; 25,000)
net markdowns: (0; 35,000)
net sales: (0; 520,000)
The average cost-to-retail percentage is:


A. 52.2%.
B. 61.5%.
C. 56.8%.
D. 55%.


Answer: D. 55%.


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