Drill Problem 18-16 (Algo) [LU 18-2 (1)]

From the following, calculate the cost ratio and the cost of ending inventory to the nearest cent under the retail method.

Note: Round the "cost ratio" to the nearest hundredth percent. Round the "cost of ending inventory" to the nearest cent.

Net sales at retail for year	$ 35,000
Beginning inventorycost	$ 22,000
Beginning inventoryretail	$ 44,000
Purchasescost	$ 13,000
Purchasesretail	$ 18,000

\begin{tabular}{|l|l|l|l|} \hline & \multicolumn{1}{|c|}{ Cost } & \multicolumn{2}{|c|}{ Retail } \\ \hline Beginning inventory & & & \\ \hline Net purchases & & & \\ \hline Cost of goods available for sale & & & \\ \hline Less net sales at retail & & & \\ \hline Ending inventory at retail & & & % \\ \hline Cost ratio & & & \\ \hline Ending inventory at cost & & & \\ \hline \end{tabular}