1) On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available:

Sales, January 1 through April15$600,000

Inventory, January1100,000

Purchases, January 1 through April15500,000

Markup oncost25%

The amount of the inventory loss is estimated to be

A.$120,000.

B.$60,000.

C.$150,000.

D.$100,000.

2) Plank Co. uses the retail inventory method. The following information is available for the current year.

CostRetail

Beginninginventory$ 312,000$488,000

Purchases1,180,0001,660,000

Freight-in20,000

Employeediscounts8,000

Netmarkups60,000

Netmarkdowns80,000

Salesrevenue1,560,000

If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of

A .$1,200,000 and $1,720,000.

B. $1,200,000 and $1,712,000.

C. $1,492,000 and $2,200,000.

D. $1,512,000 and $2,208,000.

3) Plank Co. uses the retail inventory method. The following information is available for the current year.

CostRetail

Beginninginventory$312,000$488,000

Purchases1,180,0001,660,000

Freight-in20,000

Employeediscounts8,000

Netmarkups60,000

Netmarkdowns80,000

Salesrevenue1,560,000

The ending inventory at retail should be

A. $640,000.

B. $600,000.

C. $576,000.

D. $560,000.

4) Plank Co. uses the retail inventory method. The following information is available for the current year.

CostRetail

Beginninginventory$312,000$488,000

Purchases1,180,0001,660,000

Freight-in20,000

Employeediscounts8,000

Netmarkups60,000

Netmarkdowns80,000

Salesrevenue1,560,000

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

A. $383,600.

B. $379,680.

C. $392,000.

D. $409,920.