Benny's Bed Co. 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 September 2021. Cost Retail Beginning inventory $ 30,000 $ 50,000 Net purchases 125,000 220,000 Net markups 15,000 Net markdowns 6,000 Net sales 208,000 The average cost-to-retail percentage (rounded) is:

Question

Emmalee Oconnor

Business

17 April, 05:00

Benny's Bed Co. 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 September 2021. Cost Retail Beginning inventory $ 30,000 $ 50,000 Net purchases 125,000 220,000 Net markups 15,000 Net markdowns 6,000 Net sales 208,000 The average cost-to-retail percentage (rounded) is:

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Ryan Mccullough · Answer 1

55%

Explanation:

Benny's Bed Co

Cost Retail

Beginning inventory $ 30,000 $ 50,000

Plus:Net purchases 125,000 220,000

Net markups - 15,000

Less Net markdowns - (6,000)

Goods

available for sales $155,000 $279,000

Cost to retail percentage

$155,000 : $279,000

=55%

Therefore the average cost-to-retail percentage (rounded) is: 55%