Cruz De La Cruz Enterprises has calculated its year-end inventory on a LIFO basis to be $604,000. Plus the following information:

Selling price	$	724,000
Costs to sell		32,000
Normal profit margin		82,000
Replacement cost		624,000

What should be the reported value of Cruz's inventory?

Multiple Choice

• $610,000.

• $692,000.

• $624,000.

• $604,000.

Sookram & Wu Mechanical's adopts a periodic inventory system and the average cost retail method to calculate ending inventory and cost of goods sold. The following is available for the month of June 2021:

	Cost				Retail
Beginning inventory	$	80,000			$	130,000
Net purchases		261,000				500,000
Net markups						25,000
Net markdowns						35,000
Net sales						520,000

The average cost-to-retail percentage is:

Multiple Choice

• 52.2%.

• 61.5%.

• 55%.

• 56.8%.