Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:

Cost Retail

Beginning inventory $121,000 $200,000 Net purchases 420,000 721,000 Net markups 55,000

Net markdowns 30,000

Net sales 694,000

The conventional cost-to-retail percentage (rounded) is:

Multiple Choice

• 53.8%.
• 55.4%.
• 60.7%.
• 65.4%.