Reference no: EM132736452

Rocketfire Corp. uses the retail method to estimate its closing inventory. Extracts from the company's records follow:

At cost At retail

Net sales $715,000

Beginning inventory $ 70,000 143,000

Purchases 365,000 745,000

Purchase returns 22,000 43,000

Additional markups 24,000

Markup cancellations 5,000

Markdowns 11,000

Markdown cancellations 3,000

Problem 1: What amount should Rocketfire report on its financial statements as ending inventory estimated using the retail method? Round your cost ratio calculation to four decimal places, for example, 24.76%.

a) $59,634

b) $67,398

c) $68,033

d) $88,246