question archive Rocketfire Corp
Rocketfire Corp
Subject:FinancePrice: Bought3
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
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
