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Problem - Uncle Butch's Hunting Supply Shop reports the following information related to inventory:
Cost
Retail
Beginning inventory
$ 35,000
$ 92,000
Purchases
75,000
200,000
Net additional markups
-
15,000
Net markdowns
(22,000)
Goods available for sale
$110,000
$ 285,000
Sales
(178,000)
Ending inventory at retail
$ 107,000
Calculate Uncle Butch's' ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.
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