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Retail Inventory Method The following data were available from Hegge Department Store's records for the year ended December 31, 2016: At Cost At Retail Merchandise
Retail Inventory Method
The following data were available from Hegge Department Store's records for the year ended December 31, 2016:
| At Cost | At Retail | |
| Merchandise inventory, January 1, 2016 | $100,000 | $150,000 |
| Purchases | 341,000 | 470,000 |
| Markups | 10,000 | |
| Markdowns | 40,000 | |
| Sales | 450,000 |
Required:Using the retail method, what is the estimate of the merchandise inventory at December 31, 2016, valued at the lower of cost or market? Round the cost-to-retail ratio to three decimal places.
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