Reference no: EM132905613

Ohana Company uses the retail inventory method. The following information is available for the current year.
                         

                                                             Cost                Retail

Beginning inventory                      78,000              122,000

Purchases                                    295,000          415,000

Freight-in                                         5,000                 -

Employee discount                                 -                2,000

Net markups                                        -                  15,000

Net markdowns                                      -                  20,000

Sales                                                       -               390,000

Problem 1: If the ending inventory is to be valued at approximately lower-of-average-cost-or-net realizable value, the calculation of cost ratio should be based on cost and retail of Cost Retail Cost Retail

A. 378,000 554,000

B. 373,000 550,000

C. 300,000 428,000

D. 378,000 552,000

Problem 2: The ending inventory at retail should

A. 140,000

B. 144,000

C. 150,000

D. 160,000

Problem 3: The approximate cost of the ending inventory by the conventional retail method is

A. 95,900

B. 94,920

C. 98,000

D. 102,480